ALARM.COM HOLDINGS, INC., 10-K filed on 2/19/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 12, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 001-37461    
Entity Registrant Name ALARM.COM HOLDINGS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 26-4247032    
Entity Address, Address Line One 8281 Greensboro Drive    
Entity Address, Address Line Two Suite 100    
Entity Address, City or Town Tysons    
Entity Address, State or Province VA    
Entity Address, Postal Zip Code 22102    
City Area Code 877    
Local Phone Number 389-4033    
Title of 12(b) Security Common Stock, $0.01 par value per share    
Trading Symbol ALRM    
Security Exchange Name NASDAQ    
Entity Well- known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 1,858.3
Entity Common Stock, Shares Outstanding (in shares)   49,666,158  
Documents Incorporated by Reference
Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2026 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2025.
    
Entity Central Index Key 0001459200    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus (Q1,Q2,Q3,FY) FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Washington, District Of Columbia
v3.25.4
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue:      
Total revenue $ 1,011,187 $ 939,827 $ 881,682
Cost of revenue:      
Total cost of revenue [1] 342,295 326,149 325,159
Operating expenses:      
Sales and marketing 123,788 111,242 100,226
General and administrative 110,418 108,879 112,930
Research and development 270,229 255,878 245,114
Amortization and depreciation 30,819 29,131 31,424
Total operating expenses 535,254 505,130 489,694
Operating income 133,638 108,548 66,829
Interest expense (17,294) (11,426) (3,429)
Interest income 45,617 47,359 29,801
Other income / (expense), net 4,645 (2,807) 4,624
Income before income taxes 166,606 141,674 97,825
Provision for income taxes 37,620 19,294 17,485
Income from equity method investments, net (2,642) (133) 0
Net income 131,628 122,513 80,340
Net loss attributable to redeemable noncontrolling interests 946 1,603 703
Net income attributable to common stockholders $ 132,574 $ 124,116 $ 81,043
Net income attributable to common stockholders per share:      
Basic (in dollars per share) $ 2.66 $ 2.50 $ 1.63
Diluted (in dollars per share) $ 2.46 $ 2.29 $ 1.53
Weighted average common shares outstanding:      
Basic (in shares) 49,795,191 49,641,763 49,818,448
Diluted (in shares) 58,923,815 57,993,019 54,625,434
SaaS and license revenue      
Revenue:      
Total revenue $ 689,397 $ 631,198 $ 569,200
Cost of revenue:      
Total cost of revenue [1] 96,200 89,512 85,898
Hardware and other revenue      
Revenue:      
Total revenue 321,790 308,629 312,482
Cost of revenue:      
Total cost of revenue [1] $ 246,095 $ 236,637 $ 239,261
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 131,628 $ 122,513 $ 80,340
Other comprehensive income / (loss)      
Foreign currency translation adjustment 1,875 (583) 1,398
Total other comprehensive income / (loss) 1,875 (583) 1,398
Comprehensive income 133,503 121,930 81,738
Comprehensive loss attributable to redeemable noncontrolling interests 946 1,603 703
Comprehensive income attributable to common stockholders $ 134,449 $ 123,533 $ 82,441
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 960,584 $ 1,220,701
Accounts receivable, net of allowance for credit losses of $5,171 and $3,870, and net of allowance for product returns of $2,140 and $2,448 as of December 31, 2025 and 2024, respectively 141,852 126,082
Inventory 94,429 87,435
Other current assets, net of allowance for credits losses of $749 and $0 as of December 31, 2025 and 2024, respectively 75,646 47,374
Total current assets 1,272,511 1,481,592
Property and equipment, net 64,799 63,205
Intangible assets, net 99,352 63,159
Goodwill 224,987 154,211
Deferred tax assets 152,255 181,284
Operating lease right-of-use assets 52,636 53,425
Investments in unconsolidated entities 226,931 17,170
Other assets, net of allowance for credit losses of $0 and $1 as of December 31, 2025 and 2024, respectively 43,120 24,162
Total assets 2,136,591 2,038,208
Current liabilities:    
Accounts payable, accrued expenses and other current liabilities 107,195 139,427
Accrued compensation 31,126 28,739
Deferred revenue 16,428 12,940
Convertible senior notes, net 499,867 0
Operating lease liabilities 8,524 7,700
Total current liabilities 663,140 188,806
Deferred revenue 13,456 13,619
Convertible senior notes, net, noncurrent 489,641 983,477
Operating lease liabilities 67,609 65,534
Other liabilities 11,735 15,479
Total liabilities 1,245,581 1,266,915
Commitments and contingencies (Note 14)
Redeemable noncontrolling interests 42,847 44,747
Stockholders’ equity    
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2025 and 2024 0 0
Common stock, $0.01 par value, 300,000,000 shares authorized; 53,540,939 and 52,756,077 shares issued; and 49,630,714 and 49,618,346 shares outstanding as of December 31, 2025 and 2024, respectively 536 528
Additional paid-in capital 549,913 521,192
Treasury stock, at cost; 3,910,225 and 3,137,731 shares as of December 31, 2025 and 2024, respectively (227,852) (186,291)
Accumulated other comprehensive income 2,690 815
Retained earnings 522,876 390,302
Total stockholders’ equity 848,163 726,546
Total liabilities, redeemable noncontrolling interests and stockholders’ equity $ 2,136,591 $ 2,038,208
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for credit losses $ 5,171 $ 3,870
Allowance for product returns 2,140 2,448
Other current assets, allowance for credit loss 749 0
Other assets, allowance for credit loss $ 0 $ 1
Preferred stock, par value ( in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value ( in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 53,540,939 52,756,077
Common stock, shares outstanding (in shares) 49,630,714 49,618,346
Treasury stock, shares repurchased (in shares) 3,910,225 3,137,731
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income $ 131,628 $ 122,513 $ 80,340
Adjustments to reconcile net income to net cash flows from operating activities:      
Provision for credit losses on accounts receivable 2,155 950 1,508
Reserve for product returns 3,071 3,187 4,399
Provision for credit losses on notes receivable 748 3,996 3
Amortization and depreciation 30,819 29,131 31,424
Amortization of debt issuance costs 6,031 4,796 3,145
Amortization of operating leases 15,381 13,084 11,484
Deferred income taxes 29,974 (34,496) (47,730)
Stock-based compensation 33,190 41,242 47,283
Distributions on investments in unconsolidated entities 7,763 0 0
Gain on from investments in unconsolidated entities (7,748) (127) 0
Other adjustments 1,624 955 2,701
Changes in operating assets and liabilities (net of business acquisitions):      
Accounts receivable (15,706) 271 (10,536)
Inventory (5,602) 8,558 20,961
Other current and non-current assets (20,964) (2,697) (1,338)
Accounts payable and other current liabilities (46,488) 20,133 4,613
Deferred revenue 256 3,674 4,553
Operating lease liabilities (9,864) (12,467) (13,947)
Other liabilities (2,938) 3,710 (2,898)
Cash flows from operating activities 153,330 206,413 135,965
Cash flows used in investing activities:      
Business acquisitions, net of cash acquired (112,915) 0 (9,696)
Additions to property and equipment (16,281) (10,133) (7,517)
Issuances of notes receivable (25,255) (500) (450)
Capitalized software development costs (1,307) (1,643) (743)
Receipt of payments on notes receivable 98 51 55
Proceeds from sale of investments in unconsolidated entities 3,058 0 0
Purchase of investments in unconsolidated entities (205,880) (11,025) (1,700)
Purchases of other intangible assets 0 (1,431) (5,915)
Cash flows used in investing activities (358,482) (24,681) (25,966)
Cash flows (used in) / from financing activities:      
Proceeds from issuance of convertible senior notes 0 500,000 0
Payments of debt issuance costs 0 (14,834) 0
Purchases of capped calls related to convertible senior notes 0 (63,050) 0
Payments of deferred consideration for acquisitions (1,741) (7,269) (1,672)
Purchases of treasury stock, including transaction costs (41,561) (75,000) (27,298)
Purchases of redeemable noncontrolling interest (16,179) 0 (832)
Payments of acquired debt 0 0 (3,040)
Payments of tax withholdings related to vesting of restricted stock units 0 (3,401) (2,621)
Issuances of common stock from equity-based plans 4,475 9,984 3,598
Cash flows (used in) / from financing activities (55,006) 346,430 (31,865)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (167) (109) 66
Net (decrease) / increase in cash, cash equivalents and restricted cash (260,325) 528,053 78,200
Cash, cash equivalents and restricted cash at beginning of the period 1,229,132 701,079 622,879
Cash, cash equivalents and restricted cash at end of the period 968,807 1,229,132 701,079
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 960,584 1,220,701 696,983
Restricted cash included in other current assets and other assets 8,223 8,431 4,096
Total cash, cash equivalents and restricted cash 968,807 1,229,132 701,079
Supplemental disclosures:      
Cash paid for interest 11,250 5,656 192
Cash paid for income taxes, net of refunds 45,387 68,211 64,577
Noncash investing and financing activities:      
Cash not yet paid for capital expenditures 883 255 630
Cash not yet paid for business and asset acquisitions and investments - holdback and working capital adjustments 13,513 200 2,780
Conversion of notes receivable and other assets to investments in unconsolidated entities 7,192 0 0
Contingent liability from business acquisition $ 1,223 $ 2,169 $ 2,061
v3.25.4
Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Treasury Stock
Accumulated Other Comprehensive Income / (Loss)
Retained Earnings
Beginning balance at Dec. 31, 2022 $ 23,988          
Increase (Decrease) in Temporary Equity [Roll Forward]            
Purchases of redeemable noncontrolling interest (1,238)          
Accretion adjustments of redeemable noncontrolling interest to redemption value 14,261          
Net income / (loss) attributable to common stockholders (703)          
Ending balance at Dec. 31, 2023 36,308          
Beginning balance (in shares) at Dec. 31, 2022   50,985,000        
Beginning balance at Dec. 31, 2022 598,859 $ 510 $ 497,199 $ (83,993) $ 0 $ 185,143
Beginning balance (in shares) at Dec. 31, 2022       1,533,000    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued in connection with equity-based plans (in shares)   904,000        
Common stock issued in connection with equity-based plans 3,598 $ 9 3,589      
Purchase of treasury stock, including transaction costs and excise tax (in shares)       487,918    
Purchases of treasury stock, including transaction costs and excise tax (27,298)     $ (27,298)    
Tax withholdings related to vesting of restricted stock units (2,621)   (2,621)      
Stock-based compensation expense 47,422   47,422      
Purchases of redeemable noncontrolling interest 406   406      
Accretion adjustments of redeemable noncontrolling interest to redemption value (14,261)   (14,261)      
Net income / (loss) attributable to common stockholders 81,043         81,043
Other comprehensive income 1,398       1,398  
Ending balance (in shares) at Dec. 31, 2023   51,889,000        
Ending balance at Dec. 31, 2023 688,546 $ 519 531,734 $ (111,291) 1,398 266,186
Ending balance (in shares) at Dec. 31, 2023       2,021,000    
Increase (Decrease) in Temporary Equity [Roll Forward]            
Accretion adjustments of redeemable noncontrolling interest to redemption value 10,042          
Net income / (loss) attributable to common stockholders (1,603)          
Ending balance at Dec. 31, 2024 44,747          
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued in connection with equity-based plans (in shares)   867,000        
Common stock issued in connection with equity-based plans 9,984 $ 9 9,975      
Purchase of treasury stock, including transaction costs and excise tax (in shares)       1,117,068    
Purchases of treasury stock, including transaction costs and excise tax (75,394)   (394) $ (75,000)    
Tax withholdings related to vesting of restricted stock units (3,401)   (3,401)      
Stock-based compensation expense 41,397   41,397      
Accretion adjustments of redeemable noncontrolling interest to redemption value (10,042)   (10,042)      
Purchases of capped calls related to convertible senior notes, net of tax (48,077)   (48,077)      
Net income / (loss) attributable to common stockholders 124,116         124,116
Other comprehensive income $ (583)       (583)  
Ending balance (in shares) at Dec. 31, 2024 52,756,077 52,756,000        
Ending balance at Dec. 31, 2024 $ 726,546 $ 528 521,192 $ (186,291) 815 390,302
Ending balance (in shares) at Dec. 31, 2024 3,137,731     3,138,000    
Increase (Decrease) in Temporary Equity [Roll Forward]            
Noncontrolling interest assumed through acquisition $ 6,352          
Purchases of redeemable noncontrolling interest (14,643)          
Accretion adjustments of redeemable noncontrolling interest to redemption value 7,337          
Net income / (loss) attributable to common stockholders (946)          
Ending balance at Dec. 31, 2025 42,847          
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued in connection with equity-based plans (in shares)   785,000        
Common stock issued in connection with equity-based plans 4,475 $ 8 4,467      
Purchase of treasury stock, including transaction costs and excise tax (in shares)       772,494    
Purchases of treasury stock, including transaction costs and excise tax (41,671)   (110) $ (41,561)    
Stock-based compensation expense 33,237   33,237      
Purchases of redeemable noncontrolling interest (1,536)   (1,536)      
Accretion adjustments of redeemable noncontrolling interest to redemption value (7,337)   (7,337)      
Net income / (loss) attributable to common stockholders 132,574         132,574
Other comprehensive income $ 1,875       1,875  
Ending balance (in shares) at Dec. 31, 2025 53,540,939 53,541,000        
Ending balance at Dec. 31, 2025 $ 848,163 $ 536 $ 549,913 $ (227,852) $ 2,690 $ 522,876
Ending balance (in shares) at Dec. 31, 2025 3,910,225     3,910,000    
v3.25.4
Organization
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization Organization
Alarm.com Holdings, Inc. (referred to herein as Alarm.com, the Company, or we) is the leading platform for intelligently connected properties. Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions addressing global opportunities in the residential, multi-family, small business, enterprise commercial and energy markets. Alarm.com’s solution suite includes security, video surveillance and video analytics, energy management, access control, electric utility grid management, active shooter detection, water management, personal safety and data-rich emergency response. Our solutions are delivered through an established network of trusted service provider partners, who are experts at selling, installing and supporting our solutions. We derive revenue from the sale of our cloud-based Software-as-a-Service, or SaaS, services, license fees, software, hardware, activation fees and other revenue. Our fiscal year ends on December 31.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Principles of Consolidation

Our consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. Equity investments over which we are able to exercise significant influence but do not control the investee are accounted for using the equity method.

We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity, or VIE. Voting interest entities are entities that have sufficient equity and provide equity investor voting rights that give them power to make significant decisions relating to the entity’s operations. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. In VIEs, a controlling financial interest is attained through means other than voting rights and the entities lack one or more of the characteristics of a voting entity.

We have unconsolidated equity investments in third-party businesses. Equity investments with readily determinable fair values are recorded at fair value. Equity investments without readily determinable fair values are recorded using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. We make a separate election to use the measurement alternative for each eligible investment, and reassess whether an investment qualifies for the alternative at each reporting period. Adjustments resulting from impairment, fair value or observable price changes are recorded in other income / (expense), net in our consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. The global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval (including the ongoing conflicts in Ukraine, and in the Middle East and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, tariffs, risk of recession and inflation (collectively, the Macroeconomic Conditions). Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, equity method investments, goodwill, intangible assets and other long-lived assets.

Reclassifications

Certain previously reported amounts in the consolidated statements of operations for the year ended December 31, 2024 have been reclassified to conform to our current presentation to reflect income from equity method investments, net, as a separate line item, which was previously included in other income / (expense), net. Certain previously reported amounts in the consolidated balance sheets for the year ended December 31, 2024 have been reclassified to conform to our current presentation, including the addition of the investments in unconsolidated entities as a separate line item. Certain previously reported amounts in the consolidated statement of cash flows for the years ended December 31, 2024 and 2023 have been
reclassified to conform to our current presentation, including the addition of other adjustments as a separate line item within the adjustments to reconcile net income to net cash flows from the operating activities section.

Cash and Cash Equivalents

We consider all highly liquid instruments purchased with an original maturity from the date of purchase of three months or less to be cash equivalents. As of December 31, 2025 and 2024, we have invested $941.1 million and $1.2095 billion in cash equivalents in the form of money market funds with a number of financial institutions, respectively. We consider these money market funds to be Level 1 financial instruments (see Note 11).

Accounts Receivable

Accounts receivable are principally derived from sales to customers located in the United States and Canada. Revenue in countries outside of North America accounted for 5%, 6% and 4% of our total revenue for the years ended December 31, 2025, 2024 and 2023, respectively. Accounts receivable balances related to service providers partners outside of North America were 8% as of December 31, 2025 and 2024. Our accounts receivable are stated at estimated realizable value.

Restricted Cash

We consider all cash reserved for a specific use and not available for immediate or general business use to be restricted cash. As of December 31, 2025, we had a total of $8.2 million of restricted cash, of which $2.1 million was included in other current assets and $6.1 million was included in other assets within our consolidated balance sheets. As of December 31, 2024, we had a total of $8.4 million of restricted cash, of which $2.2 million was included in other current assets and $6.2 million was included in other assets within our consolidated balance sheets.

Notes Receivable

Notes receivable are presented net of an allowance for uncollectibility, if any. We accrue interest on notes receivable based on the contractual terms of the note. Outstanding notes receivable that are aged 30 days or more from the contractual payment date are considered past due. Notes receivable are evaluated for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. See Note 10 for further details on loans provided to distribution partners and service provider partners.

Credit Losses

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately.

The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern. These risk characteristics are relevant to accounts receivable and notes receivable.

Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the years ended December 31, 2025, 2024 and 2023 we recorded credit loss expense for accounts receivable and notes receivable of $1.9 million, $4.7 million and $1.0 million in general and administrative expense in our consolidated statements of operations, respectively. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.

Credit Losses - Accounts Receivable

We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the years ended December 31, 2025, 2024 and
2023, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the year ended December 31, 2025, as compared to historical periods.

Credit Losses - Notes Receivable

We identified one portfolio segment, loan receivables, for our notes receivable. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable. During the year ended December 31, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with an affiliate entity of one of our distribution partners, or the Affiliate, and reversed the previously allowance for credit losses recorded earlier in 2024. There were no purchases or sales of financial assets during the years ended December 31, 2025 and 2024.

We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income. The accrued interest receivable as of December 31, 2025 and 2024 was $0.7 million and $0.2 million, respectively, and is reflected in other current assets and other assets within our consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the year ended December 31, 2024, we recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate. We did not write off any accrued interest receivable during the years ended December 31, 2025 and 2023.

Inventory

Our inventory, which is comprised of raw materials, work-in-process and finished goods, includes materials used to produce our wireless communications network enabled radios, video cameras, video recorders, smart thermostats, active shooter detection sensors, home automation system parts and peripherals, is stated at the lower of cost or net realizable value, and is charged to cost of sales primarily on a first in, first out, or FIFO, basis when the inventory is shipped from our manufacturer and received by our service provider partners. We periodically evaluate our inventory quantities for obsolescence based on criteria such as customer demand and changing technology and record an obsolescence write-off when necessary.

Equity Method Investments

We account for equity investments where we can exercise significant influence over, but not control, an investee using the equity method of accounting. Equity method investments are initially recorded at cost in investments in unconsolidated entities in the consolidated balance sheets. Under the equity method of accounting, investments are adjusted to recognize our proportionate share of net income or losses of the investees and are recorded in income from equity method investments, net in our consolidated statements of operations. The equity method investments are also adjusted by contributions to and distributions from the investees as well as any impairments resulting from other-than-temporary declines in fair value that is less than its carrying value. Depending on the timing of the availability of the financial statements of the investees, we may apply a three-month lag period based on when financial information is received. When applying a lag period, we adjust for any known significant changes from the lag period to our reporting date.

In cases where our equity method investments provide for a disproportionate allocation of the profits and losses of the investees, our share of income or losses from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value, or HLBV, method. Under the HLBV method, at the end of each reporting period, a calculation is prepared to determine the amount that we would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions as well as the amortization of basis differences, is the amount we recognize for our share of the income or losses from the equity investments for the period.

We have certain investments in unconsolidated entities accounted for under the equity method of accounting in which our carrying value exceeds our proportionate share of net assets of the unconsolidated entity. We record our proportionate share of amortization expense related to basis differences in income from equity method investments, net in our consolidated statements of operations.
Leases

We determine if an arrangement contains a lease at the inception of the arrangement. As part of the lease determination process, we assess several factors, including, but not limited to, whether we have the right to control and direct the use of the asset and whether the other party has a substantive substitution right. If we enter into leases that contain multiple components, we identify separate lease components based on whether or not the right to use the underlying assets is distinct and either highly dependent or highly interrelated with other rights in the contract. We also evaluate whether there are any non-lease components in the arrangement. For certain classes of underlying assets, such as data centers, we have elected not to separate non-lease components from lease components. For all other classes of underlying assets, if separate lease and non-lease components are identified, we allocate the consideration in the contract to the lease and non-lease components using the relative stand-alone selling price method at the lease inception.

Some of our leases include options to renew at our sole discretion. We also have several leases that provide us an option to terminate the lease prior to the end of the lease term. These renewal and termination options are included in the lease term at the commencement date when we are reasonably certain the options will be exercised. When assessing the likelihood of electing these options, we consider the length of the renewal period, market conditions, our expansion plans, the existence of a termination penalty, as well as other factors. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments.

Right-of-use, or ROU, assets represent our right to use an underlying asset for the term of the lease and lease liabilities represent our obligation to make lease payments throughout the term of the lease. ROU assets and lease liabilities are recognized as of the commencement date of the lease based on the present value of contractual lease payments due over the term of the lease. We use our incremental borrowing rate to determine the present value of the lease payments, as our leases do not state the rate implicit in the lease. Our incremental borrowing rate is determined on a collateralized basis at the commencement date of the lease.

ROU assets and lease liabilities resulting from operating leases are recorded on our consolidated balance sheets. Our finance leases and subleases were not material to the consolidated financial statements as of December 31, 2025. We did not have any finance leases or subleases as of December 31, 2024.

Lease expense is recognized on a straight-line basis over the term of the lease. Office and equipment lease expense is recorded in general and administrative expense and data center lease expense recorded in cost of SaaS and license revenue as well as research and development expense. Some of our leases include tenant improvement allowances, which are recorded when we are reasonably certain to utilize the allowance and are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Leases with an initial lease term of twelve months or less are considered short-term leases. Short-term leases are not recorded on our consolidated balance sheets. Expenses associated with short-term leases are recognized on a straight-line basis over the term of the lease and are recorded in general and administrative expense. Short-term lease costs were immaterial for the years ended December 31, 2025 and 2024.

Convertible Senior Notes

On January 20, 2021, we issued $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026, in a private placement to qualified institutional buyers, or the 2026 Notes. On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes. We account for the 2026 Notes and the 2029 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes and 2029 Notes. See Note 21 for details on our payment of the 2026 Notes upon maturity on January 15, 2026.

Capped Call Transactions

On May 31, 2024, we issued the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity
classification.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income / (loss). Other comprehensive income / (loss) refers to gains and losses that are recorded as an element of stockholders' equity and excluded from net income. Our other comprehensive income / (loss) consists of foreign currency translation adjustments.

Foreign Currency

For foreign operations where substantially all monetary transactions are in the local currency, we use the local currency as the functional currency. For these foreign operations, assets and liabilities are translated at period-end exchange rates and revenue and expense items are translated at average exchange rates prevailing during the periods being reported. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment within accumulated other comprehensive income, a separate component of stockholders’ equity. Gains or losses from foreign currency remeasurements that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our results of operations.

Redeemable Noncontrolling Interests

Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interests relate to our 89% equity ownership interest in PC Open Incorporated, a Washington corporation, doing business as OpenEye, our 99% equity ownership interest in Noonlight, Inc., or Noonlight, a Delaware corporation (see Note 7) and our 81% ownership interest in CHeKT, Inc., or CHeKT. The OpenEye, Noonlight and CHeKT stockholder agreements contain a put option that gives the minority stockholders the right to sell their shares to us based on the fair value of the shares and also contain a call option that gives us the right to purchase the remaining shares from the minority stockholders based on the fair value of the shares. The next put and call options related to OpenEye can be exercised beginning in the first quarter of 2028 and the fourth quarter of 2028, respectively. The put and call options related to Noonlight can each be exercised beginning in the first quarter of 2026. The put and call options related to CHeKT can each be exercised beginning in the first quarter of 2028. These redeemable noncontrolling interests are considered temporary equity and we report them between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in the consolidated statements of operations and the accretion of the redemption values is recorded as an adjustment to additional paid-in capital. We account for purchases of redeemable noncontrolling interest as a component of stockholders' equity when control is maintained. We recognize the difference between the fair value of the consideration paid for the acquired redeemable noncontrolling interest and the carrying value of the acquired redeemable noncontrolling interest as an adjustment to additional paid-in capital. The aggregate redemption values of the of the noncontrolling interest was $42.8 million and $44.7 million as of December 31, 2025 and 2024, respectively.

Internal-Use Software

We capitalize the costs directly related to the development of internal-use software for our platforms during the application development stage of the projects. Such costs primarily include payroll and payroll-related costs for engineers and product development employees as well as third-party consultants directly associated with the development project. Our internal-use software is reported at cost less accumulated amortization. Amortization begins once the project is ready for its intended use, which is usually when the code goes into production in weekly software builds on our platforms. We amortize the asset on a straight-line basis over the estimated useful life, which is typically a three to five-year period. We update our software for our SaaS multi-tenant platforms on a weekly basis utilizing continuous agile development methods, which primarily consists of bug-fixes and user interface changes. We evaluate whether a project should be capitalized if it adds significant functionality to our platforms. Maintenance activities or minor upgrades are expensed in the period performed.

External Software

Costs incurred in researching and developing a computer software product that will be marketed and sold are charged to expense when incurred until technological feasibility is established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. After technological feasibility is established, certain payroll and payroll-related costs are capitalized for engineers and product development employees directly associated with the development project. Cost capitalization ceases when the product is available for general release. Our non-hosted software is typically developed in an agile environment with frequent revisions to product release features and functions. Agile development
results in a short duration between completion of the detailed program design and beta release. As of December 31, 2025 and 2024, our capitalized software development costs for internal-use software and external software included in the consolidated balance sheets were $3.4 million and $2.4 million, respectively.

Revenue Recognition

We derive our revenue from three primary sources: the sale of cloud-based SaaS services on our integrated Alarm.com platform, the sale of licenses and services on our non-hosted software platform, or Software platform, and the sale of hardware products. We sell our platform and hardware solutions to service provider partners that resell our solutions and hardware to residential and commercial property owners, who are the service provider partners’ customers. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We also sell our hardware to distributors who resell the hardware to service provider partners. We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware. These service provider contracts typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions.

Our hardware sales include connected devices that enable our services, such as video cameras, video recorders, gunshot detection sensors, gateway modules and smart thermostats. Our service provider partners may purchase our hardware in anticipation of installing the hardware in a residential or commercial property when they create a new subscriber account, or for use in existing subscriber properties. The purchase of hardware occurs in a transaction that is separate and typically in advance of the purchase of our platform services. The performance obligation is primarily satisfied when the hardware is received by our service provider partner or distributor. Service provider partners transact with us to purchase our platform solutions and resell our solutions to a new subscriber, or to upgrade or downgrade the solutions of an existing subscriber, at which time the subscriber’s access to our platform solutions is enabled and the delivery of the services commences. Our performance obligation related to providing our platform solutions is satisfied on a daily basis as the subscriber uses the platform services. The purchase of platform solutions and the purchase of hardware are separate transactions as revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers.

Contracts with our service provider partners typically have an initial term of one year. Further, SaaS and license revenue associated with our contracts is recognized at an amount that corresponds directly with the value of the performance completed to date. Additionally, the consideration received from hardware sales corresponds directly with the stand-alone selling price of the hardware. As a result, we have elected to use the practical expedient related to the amount of transaction price allocated to the unsatisfied performance obligations and therefore, we have not disclosed the total remaining revenue expected to be recognized on all contracts or the expected period over which the remaining revenue would be recognized.

To determine the transaction price, we analyze all of the performance obligations included in the contract. We consider the terms of the contract and our customary business practices, which typically do not include financing components or non-cash consideration. We have variable consideration primarily in the form of rebate incentives. The significant inputs related to our estimates of variable consideration include the volume and amount of products and services sold historically and expected to be sold in the future, the availability and performance of our services and the historical and expected number of returns. Depending on the type of variable consideration and its predictability, we may apply an "expected value" approach or a "most likely amount" approach. We estimate the variable consideration at the onset of a contract and include the variable consideration within the transaction price if it is probable that a significant reversal of the variable consideration would not occur in the future. When determining whether the amount of variable consideration included in the transaction price should be constrained, we look at the history of hardware purchased and subscribers added by our service provider partners to estimate the likelihood of those service provider partners obtaining the rebates. At times, our contracts include consideration payable to a customer in the form of fixed discounts or rebates. We record the consideration payable to a customer as a reduction to the transaction price resulting in a reduction to revenue over the service period.

If we enter into contracts that contain multiple promised services, we evaluate which of the promised services represent separate performance obligations based on whether or not the promised services are distinct and whether or not the services are separable from other promises in the contract. If these criteria are met, then we allocate the transaction price to the performance obligations using the relative stand-alone selling price method at contract inception.

In determining the relative estimated selling prices, we consider market conditions, entity-specific factors and information about the customer or class of customer. Any discount within the contract is allocated proportionately to all of the separate performance obligations in the contract unless the terms of discount relate specifically to the entity’s efforts to satisfy some but not all of the performance obligations.
For our standard service provider agreements, we have used a portfolio approach for purposes of revenue recognition, as each agreement has similar characteristics and we do not expect the effects of applying this approach would have a material impact on our financial statements as compared to assessing each agreement individually.

SaaS and License Revenue

We generate the majority of our SaaS and license revenue primarily from monthly fees charged to our service provider partners on a per subscriber basis for access to our cloud-based intelligently connected property platform and related solutions. Our fees per subscriber vary based upon the service plan and features utilized.

Under the terms of our contractual arrangements with our service provider partners, we bill a monthly fee to our service provider partners in advance of the month of service, with the exception of the initial partial month of service, which is paid in arrears. Due to the limited period of time between receipt of payment and delivery of service, we have not accounted for these advance payments as significant financing components. We typically transfer the promised SaaS services to our customers over time, which is evidenced by the fact that the customers receive and consume the benefits provided by our performance of the services as such services are rendered. As a result, we recognize revenue from SaaS services on a monthly basis as we satisfy our performance obligations over the period of service. We have demonstrated that we can sell our SaaS offering on a stand-alone basis, as it can be sold separately from hardware and activation services. Our service provider partners typically incur and pay the same monthly fee per subscriber account for the entire period a subscriber account is active.

We offer multiple service level packages for our platform solutions including a range of solutions and a range of a la carte add-ons for additional features. The fee paid by our service provider partners each month for the delivery of our solutions is based on the combination of packages and add-ons enabled for each subscriber. We utilize tiered pricing plans where our service provider partners may receive prospective pricing discounts driven by volume.

We also generate SaaS and license revenue from the fees paid to us when we license our intellectual property to third parties for use of our patents. We bill a monthly fee to third parties based on the number of customers that were active during the prior month. We apply the usage-based royalty exception to recognize license revenue because the sole or predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the license period. In addition, in certain markets, our EnergyHub subsidiary sells its demand response service for an annual service fee, with pricing based on the number of subscribers or amount of aggregate electricity demand made available for a utility’s or market’s control.

Software License Revenue

Our SaaS and license revenue also includes our software license revenue from monthly fees charged to service providers on a per subscriber basis for access to our Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Our agreements for the Software platform solution typically include software and services, such as post-contract customer support, or PCS. Software sales that include multiple elements are typically allocated to the various elements using the relative stand-alone selling price method. We apply the usage-based royalty exception to recognize license revenue associated with software hosted by our customers because the predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period of use. Under the terms of our contractual arrangements with our service provider partners, we are entitled to payment of a monthly fee that is billed per subscriber for the month of service. Our software license revenue during the years ended December 31, 2025, 2024 and 2023 was $17.7 million, $20.3 million and $23.2 million, respectively.

Hardware and Other Revenue

We generate hardware and other revenue primarily from the sale of video cameras, video recorders, smart thermostats and cellular radio modules that provide access to our cloud-based platforms and, to a lesser extent, the sale of other devices, including image sensors, gunshot detection sensors and peripherals. We primarily transfer hardware to our customers upon delivery to the customer, which corresponds with the time at which the customer obtains control of the hardware. As a result, we recognize hardware and other revenue as we satisfy our performance obligations, which primarily occurs when the hardware is received by our service provider partner or distributor, net of a reserve for estimated returns. There are a few contracts in which we provide shipping and handling services to the customer after control of the hardware transfers to the customer. In these instances, we have elected to account for shipping and handling costs as activities performed to fulfill the promise to transfer hardware to the customer and not as a separate promised service.

Amounts due from the sale of hardware are payable in accordance with the terms of our agreements with our service provider partners or distributors, and are not contingent on resale to end-users, or to service provider partners in the case of sales of hardware to distributors. Payment for our hardware is typically due within 30 days from shipment. Our distributors sell directly to our service provider partners under terms between the two parties.
When determining the amount of consideration we expect to be entitled to for the sale of our hardware, we estimate the variable consideration associated with customer returns. We record a reserve against revenue for hardware returns based on historical returns. For each of the years ended December 31, 2025, 2024 and 2023, our reserve against revenue for hardware returns was 1% of hardware and other revenue. We evaluate our hardware reserve on a quarterly basis or if there is an indication of significant changes in return experience. Historically, our returns of hardware have not significantly differed from our estimated reserve. Additionally, we provide warranties related to the intended functionality of the products and services provided and those warranties typically allow for the return of hardware up to one year past the date of sale. We determined that these warranties are not separate performance obligations as they cannot be purchased separately and do not provide a service in addition to an assurance the hardware will function as expected.

Our hardware and other revenue also includes our revenue from the sale of perpetual licenses that provide our customers in the commercial market the right to use our video surveillance software for an indefinite period of time in exchange for a one-time license fee. Our hardware and other revenue also includes our revenue from the sale of licenses that provide our customers the right to use our gunshot detection solution in exchange for license fees. Our perpetual licenses and licenses to our gunshot detection solution provide a right to use intellectual property that is functional in nature and has significant stand-alone functionality. Accordingly, for licenses of functional intellectual property, revenue is recognized at the point-in-time when control has been transferred to the customer, which occurs once the software has been made available to the customer.

Hardware and other revenue may also include activation fees charged to some of our service provider partners for activation of a new subscriber account on our platforms, as well as fees paid by service provider partners for our marketing services. Our service provider partners use services on our platforms, such as support tools and applications, to assist in the installation of our solutions in subscriber properties. This installation marks the beginning of the service period on our platforms and, on occasion, we earn activation revenue for fees charged for this service. The activation fee is non-refundable, separately negotiated and specified in our contractual arrangements with our service provider partners and is charged to the service provider partner for each subscriber activated on our platforms. The decision whether to charge an activation fee is based in part on the expected number of subscribers to be added by our service provider partners and as a result, many of our largest service provider partners do not pay an activation fee. Activation fees are not offered on a stand-alone basis separate from our SaaS offering and are billed and received at the beginning of the arrangement. We record activation fees initially as deferred revenue and we recognize these fees ratably over the expected term of the subscribers’ account which we estimate is 10 years based on our annual attrition rate. The portion of these activation fees included in current and long-term deferred revenue as of our balance sheet date represents the amounts that will be recognized ratably as revenue over the following twelve months, or longer as appropriate, until the 10-year expected term is complete. The balance of deferred revenue for activation fees was $4.0 million and $4.3 million as of December 31, 2025 and 2024, respectively, which combines current and long-term balances.

Cost of Revenue

Our cost of SaaS and license revenue primarily includes the amounts paid to wireless network providers and, to a lesser extent, the costs of running our network operations centers which are expensed as incurred, as well as patent and royalty costs in connection with technology licensed from third-party providers and amounts paid to distributed energy resource providers. Our cost of SaaS and license revenue also includes our cost of software license revenue, which primarily includes the payroll and payroll-related costs of the department dedicated to providing service exclusively to those service providers that host the Software platform. Our cost of software license revenue during the years ended December 31, 2025, 2024 and 2023 was $0.4 million, $0.6 million and $0.6 million, respectively. Our cost of hardware and other revenue primarily includes cost of raw materials, tooling, freight shipments and amounts paid to our third-party manufacturer for production and fulfillment of our cellular radio modules and image sensors, and procurement costs for our video cameras, video recorders, smart thermostats and gunshot detection sensors, which we purchase from an original equipment manufacturer, and other devices. Cost of hardware and other revenue also includes material costs and labor cost related to our employees who manufacture hardware for our suite of IoT solutions. Additionally, our cost of hardware and other revenue includes royalty costs in connection with technology licensed from third-party providers.

We record the cost of SaaS and license revenue as expenses are incurred, which corresponds to the delivery period of our services to our subscribers. We record the cost of hardware and other revenue primarily when the hardware and other services are delivered to the service provider partner, which occurs when control of the hardware and other services transfers to the service provider partner. Our cost of revenue excludes amortization and depreciation shown in operating expenses.

Contract Asset and Contract Liability Balances

At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each distinct promise to transfer a good or service, or bundle of goods or services. To identify the performance obligations, we consider all of the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. We record a contract asset when we satisfy a performance obligation by transferring a promised good or service. Contract assets can be conditional or unconditional depending on whether another performance
obligation must be satisfied before payment can be received. We receive payments from our service provider partners based on the billing schedule established in our contracts. All of the accounts receivable presented in the consolidated balance sheets represent unconditional rights to consideration. We do not have any material assets from contracts containing conditional rights and we do not have any material assets from satisfied performance obligations that have not been invoiced.

We recognize an asset related to the costs incurred to obtain or fulfill a contract only if we expect to recover those costs and we would not have incurred those costs if the contract had not been obtained. We recognize an asset from the costs incurred to fulfill a contract if the costs (i) are specifically identifiable to a contract, (ii) enhance resources that will be used in satisfying performance obligations in future and (iii) are expected to be recovered. Our assets related to costs incurred to obtain a contract consist of capitalized commission costs, upfront payments made to a customer and contracts with an outstanding performance obligation. Based on the policy above, we capitalize a portion of our commission costs as an incremental cost of obtaining a contract. When calculating the incremental cost of obtaining a contract, we exclude any commission costs related to metrics that could be satisfied without obtaining a contract, including training-related metrics. We amortize our commission costs to sales and marketing expense on our consolidated statements of operations over a period of three years, which is consistent with the period over which the products and services related to the commission are transferred to the customer. The three-year period was determined based on our review of historical enhancements and upgrades to our products and services. We applied the portfolio approach to account for the amortization of contract costs for those contracts that have similar characteristics. Upfront payments made to a customer are capitalized and amortized over the expected period of benefit and are recorded as a reduction to revenue.

Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. All of the deferred revenue presented in the consolidated balance sheets represents contract liabilities resulting from advance cash receipts from customers or amounts billed in advance to customers from the sale of services. Changes in deferred revenue are due to our performance under the contract as well as to cash received from new contracts for which services have not been provided.

Research and Development

Our research and development costs consist primarily of personnel and related expenses for our employees working on our product development and software and device engineering teams, including salaries, bonuses, stock-based compensation, benefits and other personnel costs. Our research and development of new products and services is a multidisciplinary effort across our product management, program management, software engineering, device engineering, quality engineering, configuration management and network operations teams. Also included are non-personnel costs, such as consulting and professional fees paid to third-party development resources. We invest substantial resources in research and development to enhance our platforms and applications, support our technology infrastructure, develop new capabilities and conduct quality assurance testing.

Fair Value Measurements

The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date;

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for similar assets and liabilities, either directly or indirectly; quoted prices in markets that are not active; and

Level 3 - Unobservable inputs supported by little or no market activity.

The carrying amount of financial assets, including cash and cash equivalents and accounts receivable, as well as accounts payable approximates fair value because of the short maturity and liquidity of those instruments.

Assets and Liabilities Measured at Fair Value on a Recurring Basis - In 2025 and 2024, we recorded assets for our money market accounts and equity securities with readily determinable fair values on a recurring basis. In 2025 and 2024, we recorded liabilities for a contingent consideration liability related to acquisitions at fair value on a recurring basis.

Assets Measured at Fair Value on a Nonrecurring Basis - We measure certain assets, including property and equipment, goodwill and intangible and long-lived assets at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. Additionally, equity investments without readily determinable fair
values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available.

Concentration of Credit Risk

The financial instruments that potentially subject us to concentrations of credit risk consists principally of cash and cash equivalents and accounts receivables. All of our cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. Our cash and cash equivalent accounts may exceed federally insured limits at times. We mitigate the risk of loss for our cash and cash equivalents by depositing funds with a number of reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. We have not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, we evaluate the credit worthiness of our service provider partners and maintain an allowance for credit losses. The majority of our accounts receivable balance is due from our service provider partners in North America. We assess the concentrations of credit risk with respect to accounts receivables based on one industry and one geographic region and believe our reserve for uncollectible accounts is appropriate based on our history and this concentration.

Stock-Based Compensation

We compensate our executive officers, board of directors and employees with stock-based compensation plans under our 2025 Equity Incentive Plan, or 2025 Plan. We record stock-based compensation expense related to time-based restricted stock units based upon the award’s grant date fair value and use an accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. We record stock-based compensation expense related to performance-based restricted stock units based on management’s determination of the probable outcome of the performance conditions and we record a cumulative adjustment in periods in which there is a change in the estimated number of shares expected to vest. Our equity awards generally vest over five years and are settled in shares of our common stock. During 2025, 2024 and 2023, we recognized compensation expense of $33.2 million, $41.2 million and $47.3 million, respectively. During 2025 and 2023 we recognized a tax shortfall from stock-based awards of $1.0 million and $0.5 million, respectively. During 2024, we recognized an associated tax windfall benefit from stock-based awards of $1.8 million. We account for stock-based compensation arrangements with non-employees based upon the award’s grant date fair value. We estimate the fair value of each option granted on the date of the grant using the Black-Scholes option-pricing model, which contains uncertainties and requires us to estimate the risk-free interest rate, expected term, expected stock price volatility and dividend yield. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted.

Our Employee Stock Purchase Plan, or 2015 ESPP, allows eligible employees to purchase shares of our common stock at 90% of the fair market value of the closing price on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year is limited to the lesser of 10% of the participant's base compensation for that year or the number of shares with a fair market value of $15,000. The 2015 ESPP is considered compensatory for purposes of share-based compensation expense. Compensation expense is recognized for the amount of the discount, net of actual forfeitures, over the six-month purchase period.

401(k) Defined Contribution Plan

We adopted the Alarm.com Holdings 401(k) Plan, or the Plan, on April 30, 2009. All of our employees are eligible to participate in the Plan. For the years ended December 31, 2025, 2024 and 2023, our discretionary match was 100% of employee contributions up to 10% of salary and up to a $5,000 maximum match. We recognized compensation expense of $7.7 million, $7.5 million and $7.2 million for the years ended December 31, 2025, 2024 and 2023, respectively, related to our matching contributions.

Business Combinations

We are required to allocate the purchase price of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. The net assets and results of operations of an acquired entity are included in our consolidated financial statements from the acquisition date. Acquisition-related costs are expensed as incurred. Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired net of liabilities assumed. This valuation requires management to apply significant judgment in estimating the fair value of long-lived and intangible assets acquired, which involves the use of significant estimates and assumptions. 

Significant estimates and assumptions in valuing certain acquired customer relationship intangible assets include estimates about future expected cash flows, attrition rates and discount rates. Significant estimates and assumptions in valuing acquired developed technology intangible assets include estimates about future expected cash flows, obsolescence factors, royalty rates
and discount rates. Significant estimates and assumptions in valuing acquired trade name intangible assets include estimates about future expected cash flows, royalty rates and discount rates.

During the measurement period, we may record adjustments to the assets acquired and liabilities assumed. Any adjustments to provisional amounts that are identified during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Some acquisitions may include contingent consideration, which is an obligation to make future payments to the seller contingent upon the achievement of future operational or financial targets. The fair value of the contingent consideration is estimated on a quarterly basis and changes in the fair value of the contingent consideration resulting from information that existed subsequent to the acquisition date are recorded in the consolidated statements of operations.

Goodwill, Intangible Assets and Long-lived Assets

Goodwill

Goodwill represents the excess of (1) the aggregate of the fair value of consideration transferred in a business combination, over (2) the fair value of assets acquired, net of liabilities assumed. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments. Goodwill is not amortized, but is subject to annual impairment tests. We perform our annual impairment review of goodwill on October 1 and when a triggering event occurs between annual impairment tests. We test our goodwill at the reporting unit level. We perform either a qualitative analysis or a quantitative analysis every year depending on the changes to our goodwill balance as well as changes in our business and the economy. Qualitative factors we consider include, but are not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances and market capitalization. The amount of goodwill impairment is calculated as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

For our 2025 annual impairment review, we performed a qualitative assessment for our Alarm.com and Other reporting units. Based on the results of our qualitative assessment, we determined that it was not more likely than not that the fair value of our reporting units was less than their carrying amount, including goodwill. Therefore, we concluded that there was no goodwill impairment as of October 1, 2025. Our assessment was performed as of October 1, 2025, and we have determined there has been no triggering events that resulted in goodwill impairment from our assessment date through December 31, 2025.

Intangible Assets and Long-lived Assets

Intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives. We evaluate the recoverability of our intangible assets with definite lives and long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of intangible assets with definite lives and long-lived assets are measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.

For the years ended December 31, 2025, 2024 and 2023, we determined there were no impairments of our intangible assets with definite lives or other long-lived assets.

Advertising Costs

We expense advertising costs as incurred. Advertising costs totaled $7.7 million, $6.6 million and $2.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. Advertising costs are primarily included within sales and marketing expenses on our consolidated statements of operations.

Accounting for Income Taxes

We account for income taxes under the asset and liability method as required by Accounting Standards Codification, or ASC 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that are included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations.

We are subject to income taxes in the United States and foreign jurisdictions based upon our business operations in those jurisdictions. Significant judgment is required in evaluating uncertain tax positions. We record uncertain tax positions in accordance with ASC 740-10 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) with respect to those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties as a component of our income tax provision.

Treasury Stock

We account for treasury stock under the cost method and present treasury stock, including any applicable commissions and fees, as a component of stockholders’ equity in the consolidated balance sheets and statements of equity. We are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022. When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the consolidated balance sheets. Treasury stock held by us may be retired or reissued in the future.

Earnings per Share

Our basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Our diluted net income per share attributable to common stockholders is calculated by giving effect to all potentially dilutive common stock when determining the weighted-average number of common shares outstanding. For purposes of the diluted net income per share calculation, restricted stock units, options to purchase common stock and unvested shares issued upon the early exercise of options that are subject to repurchase are considered to be potential common stock.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. Additionally, we included interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share.

Our redeemable noncontrolling interests are related to our 89% equity ownership interest in OpenEye, our 99% equity ownership interest in Noonlight and our 81% equity ownership interest in CHeKT. When calculating net income attributable to the common stockholders, net loss attributable to our redeemable noncontrolling interests should be excluded from net income. As a result, net income attributable to the common stockholders is equal to the net income less the net loss attributable to redeemable noncontrolling interests as of the end of each period.

Recent Accounting Pronouncements

Adopted

On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. This amendment is required to be applied retrospectively to all prior periods presented. We adopted ASU 2023-07 during the fiscal year ended December 31, 2024, which increased the amount of disclosures within Note 20 related to segment expenses.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well as additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. We adopted ASU 2023-09 during the fiscal year ended December 31, 2025, which increased the disclosures of certain tax amounts within Note 19
related to income taxes.

Not Yet Adopted

On November 5, 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)," which requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations, including purchases of inventory, employee compensation, depreciation, amortization and depletion. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses and, on an annual basis, an entity's definition of selling expenses. The amendment is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. This amendment should be applied either on a prospective basis or a retrospective basis to any or all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

On September 18, 2025, the FASB issued ASU 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)," to align the accounting for software costs with the evolution of software development, including the shift from using a prescriptive and sequential development method to using an incremental and iterative development method. This amendment clarifies that capitalization of internal-use software costs begins when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Additionally, this amendment supersedes the website development costs guidance and it clarifies certain disclosure requirements for internal-use software costs. The amendment is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. This amendment should be applied either on a (i) prospective basis, (ii) retrospective basis to any or all prior periods presented, or (iii) modified transition basis that is based on the status of the project and whether software costs were capitalized before the date of adoption. We are currently assessing the impact this pronouncement will have on our consolidated financial statements and related disclosures.
v3.25.4
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Contract Assets

Our assets related to costs incurred to obtain or fulfill a contract primarily consist of capitalized commission costs, upfront payments made to customers and costs incurred on contracts with an outstanding performance obligation. The current portion of capitalized commission costs, upfront payments made to customers and costs incurred on contracts with an outstanding performance obligation is included in other current assets within our consolidated balance sheets. The non-current portion of capitalized commission costs, upfront payments made to customers and costs incurred on contracts with an outstanding performance obligation is reflected in other assets within our consolidated balance sheets.

We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did not record an impairment loss on our contract assets during the years ended December 31, 2025, 2024 and 2023.

The changes in our contract assets are as follows (in thousands):
Year Ended December 31,
202520242023
Beginning of period balance$12,088 $9,099 $13,975 
Additions to contract assets
15,524 10,292 7,837 
Reimbursement of previously capitalized upfront payments to customers
— — (6,774)
Amortization or satisfaction of outstanding performance obligation of capitalized contract assets
(9,665)(7,303)(5,939)
End of period balance$17,947 $12,088 $9,099 

On July 27, 2023, we received $6.9 million in cash related to the reimbursement of previously capitalized upfront payments to a customer. On the date of the payment, the $6.8 million unamortized portion of the contract asset balance was reduced to zero and the remaining amount of $0.1 million was recorded as an increase to SaaS and license revenue.
Contract Liabilities

Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. The changes in our contract liabilities are as follows (in thousands):
Year Ended December 31,
202520242023
Beginning of period balance$26,559 $22,885 $18,332 
Revenue deferred or acquired in period
33,903 26,883 22,861 
Revenue recognized from amounts included in contract liabilities(30,578)(23,209)(18,308)
End of period balance$29,884 $26,559 $22,885 
    
The revenue recognized from amounts included in contract liabilities primarily relates to prepayment contracts with customers as well as payments of activation fees.
v3.25.4
Accounts Receivable, Net
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Accounts Receivable, Net Accounts Receivable, Net
The components of accounts receivable, net are as follows (in thousands):
December 31,
20252024
Accounts receivable$149,163 $132,400 
Allowance for credit losses(5,171)(3,870)
Allowance for product returns(2,140)(2,448)
Accounts receivable, net$141,852 $126,082 

For the years ended December 31, 2025, 2024 and 2023 we recorded a provision for credit losses on our accounts receivable of $2.2 million, $1.0 million and $1.5 million, respectively.

For the years ended December 31, 2025, 2024 and 2023, we recorded a $3.1 million, $3.2 million and $4.4 million reserve for product returns in our hardware and other revenue, respectively. Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates.

Allowance for Credit Losses - Accounts Receivable

The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,777)$(93)$(3,723)$(141)
(Provision for) / recovery of expected credit losses(1,952)(203)(956)6 
Write-offs798 56 902 42 
End of period balance$(4,931)$(240)$(3,777)$(93)
v3.25.4
Inventory
 12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Inventory Inventory
The components of inventory are as follows (in thousands):
December 31,
20252024
Raw materials$18,238 $23,881 
Work-in-process372 595 
Finished goods75,819 62,959 
Total inventory$94,429 $87,435 
v3.25.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Furniture, fixtures and office equipment, computer software and hardware, internal-use software, construction in progress, leasehold improvements and real property and improvements are recorded at cost and presented net of depreciation on the consolidated balance sheets. We record land at historical cost. Furniture, fixtures and office equipment and computer software and hardware are depreciated on a straight-line basis over lives generally ranging from three to five years. Internal-use software included in fixed assets is amortized on a straight-line basis over a three-year period. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Real property is amortized on a straight-line basis over lives ranging from 15 to 39 years and the improvements related to real property are amortized on a straight-line basis over the shorter of the life of the underlying real property or the asset lives.

The components of property and equipment, net are as follows (in thousands):
December 31,
20252024
Furniture, fixtures and office equipment$11,320 $10,325 
Computer software and hardware43,644 41,197 
Internal-use software8,949 8,949 
Construction in progress13,372 14,809 
Leasehold improvements38,004 34,397 
Real property and improvements11,441 11,322 
Land22,711 22,684 
Total property and equipment149,441 143,683 
Accumulated depreciation(84,642)(80,478)
Property and equipment, net$64,799 $63,205 

Depreciation expense related to property and equipment for the years ended December 31, 2025, 2024 and 2023 was $11.2 million, $10.3 million and $11.2 million, respectively. We had $0.6 million of disposals and write-offs of property and equipment that impacted the consolidated statements of operations during the year ended December 31, 2025. We had no disposals and write-offs of property and equipment that impacted the consolidated statements of operations during the years ended December 31, 2024 and 2023.
v3.25.4
Acquisitions
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Asset Acquisitions

On November 22, 2024, EnergyHub International, Inc., one of our wholly-owned subsidiaries, acquired certain assets of Finland-based Kapacity.io Solutions Oy. Substantially all of the acquired assets consisted of developed technology. The acquisition of the developed technology has helped accelerate deployment of a cloud-based demand response platform internationally for our EnergyHub subsidiary.
In consideration for the purchase of the developed technology, we paid $1.3 million in cash in November 2024, after deducting $0.2 million related to an agreed holdback provision. Additionally, we incurred $0.1 million in direct transaction costs related to legal fees during 2024 that were capitalized as a component of the consideration transferred. The $1.6 million purchase price consideration related to developed technology was recorded as an intangible asset at the time of the asset acquisition and is being amortized on a straight-line basis over an estimated useful life of seven years. The asset acquisition was recorded within our Other segment.

On April 21, 2023, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired certain assets of Vintra, Inc., or Vintra. Substantially all of the acquired assets consisted of developed technology. The acquisition of the developed technology has expanded Alarm.com's learning program and accelerated deployment of advanced video analytics solutions for the Alarm.com and OpenEye platforms.

In consideration for the purchase of the acquired assets, we paid $5.5 million in cash on April 21, 2023, after deducting $0.3 million related to the settlement of an outstanding loan issued to Vintra during March 2023 and $1.0 million related to an agreed holdback provision. The holdback was fully paid by the third quarter of 2024. Additionally, we incurred $0.4 million in direct transaction costs related to legal fees during 2023 that were capitalized as a component of the consideration transferred. The $7.1 million purchase price consideration allocated to developed technology was recorded as an intangible asset at the time of the asset acquisition and is being amortized on a straight-line basis over an estimated useful life of five years. The remaining $0.1 million purchase price consideration was allocated to property and equipment. The asset acquisition was recorded within our Alarm.com segment.

Acquisition of a Business - RGS

On November 21, 2025, EnergyHub, Inc., or EnergyHub, one of our wholly-owned subsidiaries, acquired 100% of the issued and outstanding shares of capital stock of Zona NewCo, LLC, which acquired substantially all of the assets and liabilities of Resideo Grid Services, or RGS, from Resideo Technologies, Inc. RGS provides demand response aggregation and program management services for utilities. The acquisition is anticipated to strengthen EnergyHub’s position in the demand response market as well as make new demand energy response classes available to RGS customers.

On November 21, 2025, in consideration for the purchase of 100% of the issued and outstanding shares of capital stock of RGS, we paid $77.2 million in cash. Pursuant to the terms of the stock purchase agreement, following the preliminary determination of the working capital of RGS as of the closing date, the purchase price increased by $1.6 million. The working capital adjustment is expected to be finalized during the first quarter of 2026. As a result of the acquisition of RGS, we recorded approximately $0.8 million in acquisition-related costs for the year ended December 31, 2025. These costs include expenses directly related to acquiring RGS, are expensed as incurred and are included in general and administrative expense in our consolidated statements of operations. The purchase price allocation was not finalized as of the filing date of this Annual Report on Form 10-K and is primarily pending the final determination of the working capital adjustment, tax adjustments and the valuation of the acquired customer relationships.
The table below sets forth the purchase consideration and the preliminary allocation used to estimate the fair value of the tangible and intangible net assets acquired (in thousands):
November 21, 2025
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment$78,811 
Total consideration$78,811 
Estimated Tangible and Intangible Net Assets:
Accounts receivable $4,887 
Other current assets
16 
Deferred tax assets638 
Customer relationships28,947 
Developed technology4,279 
Accounts payable(356)
Accrued expenses and other current liabilities(1,588)
Deferred revenue(3,069)
Goodwill45,057 
Total estimated tangible and intangible net assets$78,811 

Goodwill of $45.1 million reflects the value of acquired workforce and synergies we expect to achieve from integrating RGS's customers and demand response aggregation and program management services into EnergyHub’s existing service offerings. The majority of the goodwill recognized is expected to be deductible for income tax purposes in future periods. We allocate goodwill to reporting units based on expected benefit from synergies and have allocated the goodwill to the Other segment.

Fair Value of Net Assets Acquired and Intangibles

The acquired activities and assets in the purchase of RGS constituted a business and in accordance with ASC 805, "Business Combinations," the assets and liabilities were recorded at their respective fair values as of November 21, 2025. We developed the fair value of intangible net assets using the relief from royalty method for developed technology and the multi-period excess earnings method for customer relationships.

Developed Technology

Developed technology primarily consists of intellectual property of proprietary software that is marketed for sale. We valued the developed technology using the relief from royalty method, an income approach. The significant assumptions used in the income approach include estimates about future expected cash flows from the developed technology, the royalty rate and the discount rate. We are amortizing the RGS developed technology, valued at $4.3 million, on an attribution method based on the discounted cash flows of the model over an estimated useful life of two years.

Customer Relationships

We recorded the customer relationships intangible separately from goodwill based on determination of the length, strength and contractual nature of the relationship that RGS shared with its customers. We valued the single group of customer relationships using the multi-period excess earnings method, an income approach. The significant assumptions used in the income approach include estimates about future expected cash flows from customer contracts, the attrition rate and the discount rate. We are amortizing the customer relationships, valued at $28.9 million, on a straight-line basis over an estimated useful life of 16 years.
Business Combinations in Operations - RGS

The operations of the RGS business combination discussed above were included in the consolidated financial statements as of the acquisition date. The pro forma information as well as the revenue and net income of the business combination were not material to the consolidated financial statements for the year ended December 31, 2025.

Acquisition of a Business – BTR

On August 15, 2025, EnergyHub, Inc., one of our wholly-owned subsidiaries, acquired all of the issued and outstanding shares of capital stock of Bridge to Renewables, Inc., or BTR. BTR provides a managed charging solution for electric vehicle manufacturers and drivers. BTR’s technology integrates directly into a vehicle’s native mobile app, delivering utility program enrollment, charging insights and incentives to electric vehicle drivers. The acquisition is anticipated to expand EnergyHub’s ecosystem of automotive partners and strengthen its end-to-end managed charging offering, supporting improved driver engagement and grid optimization for utility clients.

In consideration for the purchase of BTR, we paid $12.4 million in cash on August 15, 2025, after deducting $1.6 million related to agreed holdback provisions. The acquisition was accounted for as a business combination within the Other segment. The purchase price allocation was finalized during the fourth quarter of 2025. The overall impacts to our consolidated financial statements were not considered material for the year ended December 31, 2025.

Acquisition of a Business – CHeKT

On February 10, 2025, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired 81% of the issued and outstanding shares of capital stock of CHeKT. CHeKT provides a remote video monitoring service for central station operators that is compatible with a variety of cameras. The acquisition of CHeKT has helped expand our opportunity to provide remote video monitoring solutions in the commercial and residential markets.

In consideration for the purchase of 81% of the issued and outstanding shares of capital stock of CHeKT, we paid $23.6 million in cash on February 10, 2025, after deducting $3.7 million related to agreed holdback provisions. Pursuant to the terms of the stock purchase agreement, following the preliminary determination of the working capital of CHeKT as of the closing date, the purchase price decreased by $0.2 million. The working capital adjustment was finalized during the second quarter of 2025 and $0.5 million of the holdback was paid to stockholders of CHeKT at that time. The remaining $3.0 million of the holdback is expected to be paid to the stockholders of CHeKT by the end of the second quarter of 2026, subject to offset for any indemnification obligations. As a result of the acquisition of CHeKT, we recorded approximately $0.5 million in acquisition-related costs for the year ended December 31, 2025. These costs include expenses directly related to acquiring CHeKT, are expensed as incurred and are included in general and administrative expense in our consolidated statements of operations. The purchase price allocation was finalized during the fourth quarter of 2025, resulting in measurement period adjustments to decrease goodwill by $0.1 million and decrease tax-related liabilities by $0.1 million.
The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands):
February 10, 2025
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment$23,382 
Holdback consideration3,694 
Total consideration$27,076 
Tangible and Intangible Net Assets:
Cash$195 
Accounts receivable 308 
Inventory 645 
Other current assets
4 
Customer relationships486 
Developed technology9,412 
Trade names814 
Accounts payable(150)
Accrued expenses and other current liabilities(212)
Deferred tax liability
(1,462)
Other liabilities
(100)
Redeemable noncontrolling interest(6,352)
Goodwill23,488 
Total tangible and intangible net assets$27,076 

Goodwill of $23.5 million reflects the value of acquired workforce and synergies we expect to achieve from integrating CHeKT's remote video monitoring services into our existing solutions in the commercial and residential markets. None of the goodwill recognized is expected to be deductible for income tax purposes in future periods. We allocate goodwill to reporting units based on expected benefit from synergies and have allocated the goodwill to the Alarm.com segment.

Fair Value of Net Assets Acquired and Intangibles

The acquired activities and assets in the purchase of CHeKT constituted a business and in accordance with ASC 805, "Business Combinations," the assets and liabilities were recorded at their respective fair values as of February 10, 2025. We developed the fair value of intangible net assets using the multi-period excess earnings method for developed technology, the with-and-without method for customer relationships and the relief from royalty method for the trade name.

Developed Technology

Developed technology primarily consists of intellectual property of proprietary software that is marketed for sale. We valued the developed technology using the multi-period excess earnings method, an income approach. The significant assumptions used in the income approach include estimates about future expected cash flows from the developed technology, the obsolescence factor and the discount rate. We are amortizing the CHeKT developed technology, valued at $9.4 million, on an attribution method based on the discounted cash flows of the model over an estimated useful life of 11 years.

Customer Relationships

We recorded the customer relationships intangible separately from goodwill based on determination of the length, strength and contractual nature of the relationship that CHeKT shared with its customers. We valued the single group of customer relationships using the with-and-without method, an income approach. The significant assumptions used in the income approach include estimates about future expected cash flows from customer contracts and the discount rate. We are amortizing the customer relationships, valued at $0.5 million, on a straight-line basis over an estimated useful life of three years.
Trade Names

We valued the trade names acquired using a relief from royalty method. The significant assumptions used in the income approach include future expected cash flows from the trade name, the royalty rate and the discount rate. We are amortizing the trade names, valued at $0.8 million, on an attribution basis derived from the discounted cash flows of the model over an estimated useful life of seven years.

Redeemable Noncontrolling Interest

We have a redeemable noncontrolling interest related to our 81% equity ownership interest in CHeKT. The CHeKT stockholder agreement contains a put option that gives the minority CHeKT stockholders the right to sell their remaining 19% equity ownership interest to us based on the fair value of the shares and also contains a call option that gives us the right to purchase the remaining CHeKT shares from the minority CHeKT stockholders based on the fair value of the shares. The put and call options can each be exercised beginning in the first quarter of 2028. This redeemable noncontrolling interest was recorded at fair value on February 10, 2025, by applying the income approach using unobservable inputs for projected cash flows, including projected financial results and a discount rate, which are considered Level 3 inputs. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the consolidated balance sheets. The redemption value of the CHeKT noncontrolling interest was $6.4 million as of February 10, 2025 and $6.3 million as of December 31, 2025.

Business Combinations in Operations - CHeKT

The operations of the CHeKT business combination discussed above were included in the consolidated financial statements as of the acquisition date. The pro forma information as well as the revenue and net income of the business combination were not material to the consolidated financial statements for the year ended December 31, 2025.

Acquisition of a Business – EBS

On January 18, 2023, one of our wholly-owned subsidiaries acquired 100% of the issued and outstanding shares of capital stock of EBS Spółka z ograniczoną odpowiedzialnością, or EBS, an international producer of universal smart communicator devices, headquartered in Warsaw, Poland. We believe this acquisition will assist in the continued expansion of our international operations as well as benefit our supply chain operations.

In consideration for the purchase of EBS, we paid $9.8 million in cash on January 18, 2023, after deducting $2.2 million related to agreed holdback provisions. The holdback was fully paid by the third quarter of 2024. An earn-out up to an additional $2.5 million is payable if certain performance targets are met, which was initially recorded at the acquisition date fair value of $2.0 million. The acquisition was accounted for as a business combination within our Alarm.com segment. The purchase price allocation was finalized during the third quarter of 2023. The overall impacts to our consolidated financial statements were not considered material during the year of the acquisition.
v3.25.4
Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
The changes in goodwill by reportable segment are outlined below (in thousands):    
Alarm.comOtherTotal
Balance as of January 1, 2024$154,498 $— $154,498 
Foreign currency translation adjustment
(287)— (287)
Balance as of December 31, 2024154,211 — 154,211 
Goodwill acquired23,579 48,156 71,735 
Measurement period adjustment(91)(1,767)(1,858)
Foreign currency translation adjustment 899 — 899 
Balance as of December 31, 2025$178,598 $46,389 $224,987 

On February 10, 2025, we acquired 81% of the issued and outstanding shares of capital stock of CHeKT and initially recorded $23.6 million of goodwill in the Alarm.com segment. On August 15, 2025, we acquired 100% of the issued and outstanding shares of capital stock of BTR and initially recorded $3.1 million of goodwill in the Other segment. On November 21, 2025, we acquired 100% of the issued and outstanding shares of capital stock of RGS and recorded $45.1 million of goodwill in the Other segment. The goodwill related to the acquisitions of CHeKT, BTR and RGS reflects the value of acquired workforce and synergies we expect to achieve from integrating these acquisitions into our existing solutions. The 2025 measurement period
adjustments related to the CHeKT and BTR working capital and tax adjustments during the year ended December 31, 2025. There were no impairments of goodwill recorded during the years ended December 31, 2025, 2024 or 2023. As of December 31, 2025, the accumulated balance of goodwill impairments was $4.8 million, which is related to our acquisition of EnergyHub in 2013.

The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):
Customer
Relationships		Developed
Technology		Trade NameCapitalized Software Development Costs
Other
Total
Balance as of January 1, 2024$39,294 $37,174 $1,217 $879 $— $78,564 
Intangible assets acquired— 1,585 — — 46 1,631 
Capitalized software development costs
— — — 1,798 — 1,798 
Amortization(9,669)(8,216)(717)(232)— (18,834)
Balance as of December 31, 202429,625 30,543 500 2,445 46 63,159 
Intangible assets acquired34,120 18,398 1,058 — — 53,576 
Capitalized software development costs— — — 1,354 — 1,354 
Amortization(8,721)(9,320)(256)(440)— (18,737)
Balance as of December 31, 2025$55,024 $39,621 $1,302 $3,359 $46 $99,352 

We recorded $19.4 million, $18.6 million and $19.3 million of amortization related to our intangible assets for the years ended December 31, 2025, 2024 and 2023, respectively. There were no impairments of long-lived intangible assets during the years ended December 31, 2025, 2024 and 2023. During the year ended December 31, 2024, $0.3 million of fully amortized developed technology intangible assets previously acquired were written-off in the Alarm.com segment as the technology was no longer in use.

The following tables reflect the weighted-average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
 December 31, 2025
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$162,400 $(107,376)$55,024 10.8
Developed technology89,714 (50,093)39,621 5.2
Trade name5,532 (4,230)1,302 5.0
Capitalized software development costs4,034 (675)3,359 3.8
Other
46 — 46 5.0
Total intangible assets$261,726 $(162,374)$99,352 8.3
    
 December 31, 2024
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(98,655)$29,625 5.3
Developed technology71,316 (40,773)30,543 4.0
Trade name4,474 (3,974)500 2.9
Capitalized software development costs2,680 (235)2,445 3.7
Other
46 — 46 5.0
Total intangible assets$206,796 $(143,637)$63,159 4.6
The following table reflects the future estimated amortization expense for intangible assets (in thousands):
Year Ended December 31,Amortization
2026$23,448 
202720,325 
202814,550 
20297,683 
20306,498 
2031 and thereafter26,848 
Total future amortization expense$99,352 
v3.25.4
Investments in Unconsolidated Entities
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entities Investments in Unconsolidated Entities
Investment in Protegger Luxembourg S.à r.l, or Pronet

On November 20, 2025, we paid $30.1 million in cash to purchase 20.3% of the outstanding shares of Pronet. We do not have a controlling financial interest in Pronet, but based on the legal form of Pronet, our level of ownership and our extent of influence, we concluded that this equity investment in Pronet, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the equity method of accounting.

As of December 31, 2025, the carrying value of our equity investment in Pronet did not exceed our share of Pronet's net assets. We are not obligated to fund losses of Pronet, when applicable.

Investments in Safe Haven Security Services, LLC, or Safe Haven, and All Access Holdings, LLC, or All Access

On May 30, 2025, we paid $119.3 million in cash to purchase 32.5% of the outstanding shares of Safe Haven, after deducting $6.3 million related to an agreed holdback provision that is expected to be paid during the second quarter of 2026. On June 6, 2025, we paid $19.2 million in cash to purchase 32.5% of the outstanding shares of All Access, after deducting $1.0 million related to an agreed holdback provision that is expected to be paid during the second quarter of 2026. After consummation of these transactions, All Access and Safe Haven were under common control. We do not have a controlling financial interest in Safe Haven or All Access, but based on the legal form of Safe Haven and All Access, our level of ownership and our extent of influence, we concluded that the equity investments in Safe Haven and All Access, which are included in the Alarm.com segment, do not meet the criteria for consolidation and will be accounted for under the equity method of accounting.

As of December 31, 2025, the carrying value of our equity investments in Safe Haven and All Access exceeded our share of Safe Haven's and All Access' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill. Trade names and customer relationships are definite-lived intangible assets and are amortized on an attribution method based on the projected discounted cash flows over useful lives ranging from nine years to 14 years. We are not obligated to fund losses of Safe Haven or All Access, when applicable.

Investment in SafeStreets USA, LLC, or SafeStreets

On April 28, 2025, we paid $29.1 million in cash to purchase 24.7% of the outstanding shares of SafeStreets. We do not have a controlling financial interest in SafeStreets, but based on the legal form of SafeStreets, our level of ownership and our extent of influence, we concluded that this equity investment in SafeStreets, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the equity method of accounting.

As of December 31, 2025, the carrying value of our equity investment in SafeStreets exceeded our share of SafeStreets' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill. Trade names and customer relationships are definite-lived intangible assets and are amortized on an attribution method based on the projected discounted cash flows over their useful lives of 10 years and 11 years, respectively. We are not obligated to fund losses of SafeStreets, when applicable.

Investment in a Hardware Supplier

In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers. In July 2019, we converted the outstanding notes receivable balance of $5.6 million into 9,520,832 shares of Series B preferred stock in the hardware supplier. We concluded that the $5.6 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for using the measurement alternative. Under the alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes
from orderly transactions for identical or similar investments. As of December 31, 2025 and 2024, our investment in the hardware supplier was $5.6 million.

Investments in Technology Partners

In February 2021, we paid $5.0 million in cash to purchase 1,000,000 shares of Series B-2 Preferred Stock from a technology partner as part of a financing round that included other investors. The $5.0 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of December 31, 2025 and 2024, our investment in the technology partner was $5.7 million.

In December 2022, we paid $5.1 million in cash to another technology partner to purchase 4,231,717 shares of its Series A Preferred Stock. The $5.1 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. As of December 31, 2025 and 2024, our investment in the technology partner was $5.1 million.

In December 2023, we paid $1.5 million to another technology partner as part of a Simple Agreement for Future Equity, or SAFE. We paid an additional $1.5 million during both May 2024 and December 2024 to the same technology partner via a SAFE for a total investment of $4.5 million. On June 11, 2025, the $4.5 million SAFE was converted into shares of Series B preferred stock representing 25.9% of the outstanding shares of the technology partner. Our preferred stock provides us with a liquidation preference that is considered substantive. Accordingly, our equity ownership interest is not considered in-substance common stock. We concluded that the equity investment in the technology partner, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of December 31, 2025 and 2024, our investment in the technology partner was $4.5 million.

Summary of Investments in Unconsolidated Entities

Our investments in unconsolidated entities are as follows (in thousands):
December 31, 2025December 31, 2024
Ownership Percentage
Carrying Value
Excess Carrying Value of Investment Over Proportionate Share of Net Assets
Carrying Value
Excess Carrying Value of Investment Over Proportionate Share of Net Assets
Safe Haven and All Access
32.5 %$141,205 $143,134 $— $— 
SafeStreets
24.7 %29,436 31,144 — — 
Pronet20.3 %30,142 — — — 
Other unconsolidated entities
26,148 707 17,170 733 
Total
$226,931 $174,985 $17,170 $733 

Equity method income from our investments in unconsolidated entities are as follows (in thousands):
Year Ended December 31,
20252024
Income from equity method investments, net$2,642 $133 

Other related party transactions and balances outstanding with our equity method investees for activity subsequent to our
investments are as follows (in thousands):
Year Ended December 31,
20252024
Revenue from equity method investees
$17,411 $39 
Interest income from equity method investees
1,096 2 
Distributions received from equity method investees
7,763 — 

December 31, 2025December 31, 2024
Outstanding principal from loans to equity method investees
$21,947 $145 
Interest receivable from equity method investees
381 — 
Accounts receivable from equity method investees
1,774 82 
Total amounts receivable from equity method investees
$24,102 $227 

Summarized Financial Information

Summarized financial information for all of our equity method investees in the aggregate for the periods during which we held an equity method investment are as follows (in thousands):
Statement of OperationsYear Ended December 31,
20252024
Revenue
$730,488 $1,565 
Gross profit
300,352 688 
Operating income
106,050 (176)
Net income
64,131 (332)
Net income attributable to the equity method investees
64,131 (332)

Balance Sheet
December 31, 2025December 31, 2024
Current assets
$107,854 $470 
Noncurrent assets
548,486 1 
Current liabilities
150,650 267 
Noncurrent liabilities
209,872 239 
v3.25.4
Other Assets
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets Other Assets
Loan to SafeStreets

On January 30, 2025, we entered into a senior secured loan agreement with SafeStreets, under which a term loan was provided to them in the original principal amount of $21.5 million, which loan is collateralized by the assets of SafeStreets. Quarterly principal payments begin in the second quarter of 2027. Interest on the outstanding principal accrues at a rate per annum equal to the overnight financing rate published by the Federal Reserve Bank of New York for a period of three months, plus 3.0%. For the first two years of the loan, monthly interest payments can be payable in kind at the election of the borrower. The maturity date of the loan is January 30, 2030. As of December 31, 2025, $21.5 million of principal was outstanding from SafeStreets under the loan agreement.

Loan to a Distribution Partner

In December 2022, we amended a subordinated credit agreement with the Affiliate. The amended subordinated credit agreement with the Affiliate matures on June 18, 2027, and interest on the outstanding principal balance accrues at a rate of 12.0% per annum and is payable in kind. In March 2024, the Affiliate was in default on a loan arrangement with one of its third party secured lenders. Based on this information from the Affiliate, during the three months ended March 31, 2024, we recorded a credit loss expense of $4.0 million in general and administrative expense and recorded a reduction to our interest income of
$0.5 million related to the reversal of payable in kind interest associated with the subordinated credit agreement. We placed this loan in nonaccrual status and recorded a full allowance for credit losses for this note receivable as of March 31, 2024. During the three months ended June 30, 2024, we wrote off the entire $4.0 million outstanding note receivable balance that originated in 2017 and reversed the previously recorded allowance for credit losses.

For the years ended December 31, 2025, 2024 and 2023, we recognized $1.8 million, $2.6 million and $3.0 million of revenue from the distribution partner associated with this loan, respectively.

Loan to a Service Provider Partner

In July 2020, we entered into a loan agreement with a service provider partner, under which we agreed to loan the service provider partner up to $2.5 million, collateralized by the assets of the service provider partner. Interest on the outstanding principal accrues at a rate per annum equal to 9.0% and monthly interest and principal payments began in April 2021. The maturity date of the loan was July 24, 2025. In July 2025, we learned that this service provider partner may have a lien placed on its property that may have a priority over our security interest. Based on the information provided by the service provider partner, during the three months ended June 30, 2025, we recorded a credit loss expense of $0.7 million in general and administrative expense and we placed this loan in nonaccrual status as of June 30, 2025. As of December 31, 2025 and 2024, $0.9 million and $1.0 million of principal was outstanding from the service provider partner under the loan agreement.

For each of the years ended December 31, 2025, 2024 and 2023, we recognized $0.1 million, $0.2 million and $0.2 million of revenue from the service provider partner associated with this loan, respectively.

Allowance for Credit Losses - Notes Receivable

The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024
Beginning of period balance$(1)$(5)
Provision for expected credit losses
(748)(3,996)
Write-offs— 4,000 
End of period balance$(749)$(1)

We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):
December 31, 2025
Loan Receivables:20252024202320222021PriorTotal
Current$22,600 $500 $447 $1,500 $— $— $25,047 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — 943 943 
Total$22,600 $500 $447 $1,500 $— $943 $25,990 

December 31, 2024
Loan Receivables:20242023202220212020PriorTotal
Current$500 $146 $1,500 $— $993 $— $3,139 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$500 $146 $1,500 $— $993 $— $3,139 
There was one note receivable placed on nonaccrual status as of December 31, 2025 and no notes receivable placed on nonaccrual status as of December 31, 2024. During the years ended December 31, 2025, 2024 and 2023, there was no interest income recognized related to notes receivables that were in nonaccrual status.

As of December 31, 2025, there was $0.2 million of notes receivable placed in nonaccrual status for which there was not a
related allowance for credit losses. As of December 31, 2024, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of December 31, 2025 and 2024, there were no notes receivables that were 90 days or greater past due for which we continued to accrue interest income.

Prepaid Expenses

As of December 31, 2025 and 2024, $19.4 million and $16.1 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, insurance and long lead-time parts related to our inventory.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair Value Measurements on a Recurring Basis
Level 1Level 2Level 3Total
Assets:
Money market accounts as of December 31, 2025
$941,134 $— $— $941,134 
Money market accounts as of December 31, 2024
1,209,474 — — 1,209,474 
Equity securities with readily determinable fair value as of December 31, 2025
14,858 — — 14,858 
Equity securities with readily determinable fair value as of December 31, 2024
7,425 — — 7,425 
Liabilities:
Contingent consideration liability from acquisition as of December 31, 2025
$— $— $1,223 $1,223 
Contingent consideration liability from acquisition as of December 31, 2024
— — 2,169 2,169 
    
The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands):
Year Ended December 31,
20252024
2023
Beginning of period balance$2,169 $2,061 $— 
Acquired liabilities
— — 1,993 
Performance target achievement payment(1,266)— — 
Changes in fair value included in earnings320 108 68 
End of period balance$1,223 $2,169 $2,061 

As of December 31, 2025, $933.0 million of our money market accounts was included in cash and cash equivalents, $6.1 million was included in other assets and $2.0 million was included in other current assets in our consolidated balance sheets. As of December 31, 2024, $1.2014 billion of our money market accounts was included in cash and cash equivalents, $6.2 million was included in other assets and $1.9 million was included in other current assets in our consolidated balance sheets. Our assets from money market accounts are valued using quoted prices in active markets. Our equity securities with readily determinable fair value represent our investments in publicly traded companies, which are valued using quoted prices in active markets. During the year ended December 31, 2025, we recorded a gain on publicly traded equity securities within our treasury portfolio of $4.7 million. During the year ended December 31, 2024, we recorded a loss on publicly traded equity securities within our treasury portfolio of less than $0.1 million. Our investments in public entities are recorded at fair value within other current assets in our consolidated balance sheets and changes in fair value of the investments are recorded within other income / (expense), net within our consolidated statements of operations. See Note 14 for the carrying amount and estimated fair value of our convertible senior notes as of December 31, 2025 and 2024.

The contingent consideration liability consists of the potential earn-out payment related to our acquisition of 100% of the issued and outstanding capital stock of EBS on January 18, 2023. The earn-out payment is contingent on the satisfaction of two performance targets related to the integration of EBS's hardware into the Alarm.com platform by December 31, 2026, and has a
maximum potential payment of up to $2.5 million. We account for the contingent consideration using fair value and established a liability for the future earn-out payment based on an estimation of the probability of the future achievement of the performance targets. The contingent consideration liability was valued with Level 3 unobservable inputs, including the probability of expected achievement of the performance targets. At January 18, 2023, the fair value of the liability was $2.0 million. At each reporting date until December 31, 2026, or the achievement of the performance targets, we will remeasure the liability, using the same valuation approach. The fair value of the contingent consideration liability is included within accounts payable, accrued expenses and other current liabilities within our consolidated balance sheets. Changes in fair value resulting from information that existed subsequent to the acquisition date are recorded in general and administrative expense in the consolidated statements of operations. One of the performance targets was achieved during the year ended December 31, 2025, and the related payment of $1.3 million was made during the second quarter of 2025. The unobservable inputs used in the valuation for the remaining performance target as of December 31, 2025 included an expected achievement percentage of 100%. The valuation also included a weighted average discount rate of 4.9%, weighted by the probability of achievement of the performance targets at various dates, including a range of 4.9% to 5.0%. Selecting another probability of expected achievement or discount rate within an acceptable range would not result in a significant change to the fair value of the contingent consideration liability.

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. There were no transfers into or out of Level 3 during the years ended December 31, 2025, 2024 and 2023. There were no reclassifications between levels of the fair value hierarchy during the years ended December 31, 2025, 2024 and 2023.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
As of December 31, 2025, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2034. In August 2014, we signed a lease for office space in Tysons, Virginia where we relocated our corporate headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space as well as tenant improvement allowances. In August 2024, we entered into an amendment to the lease for our corporate headquarters, which extends the term of our existing leased office space to 2034 and includes two successive five-year renewal options. Additionally, the amendment provides for additional office space, parking spaces and tenant improvement allowances.

Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):
Year Ended December 31,
202520242023
Operating lease cost$15,381 $13,084 $11,484 
Cash paid for amounts included in the measurement of operating lease liabilities9,864 12,467 13,947 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities7,650 38,872 5,262 

During the years ended December 31, 2025, 2024 and 2023, we received cash incentives from our landlord of $4.5 million, zero, and $0.4 million, respectively, as reimbursement for tenant improvements.

December 31, 2025December 31, 2024
Weighted-average remaining lease term — operating leases7.1 years7.8 years
Weighted-average discount rate — operating leases8.1 %8.2 %
Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
2026$14,297 
202714,594 
202813,605 
202911,974 
203011,343 
2031 and thereafter37,147 
Total lease payments102,960 
Less: imputed interest(2)
26,827 
Present value of lease liabilities$76,133 
____________________
(1)Operating lease payments exclude $4.4 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.
(2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.
v3.25.4
Liabilities
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Liabilities Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):
December 31,
2025		December 31,
2024
Accounts payable$22,200 $65,615 
Accrued expenses51,360 29,443 
Income taxes payable 1,785 28,045 
Holdback and working capital liabilities from business combinations, asset acquisitions and investments in unconsolidated entities
13,713 — 
Contingent consideration liability from acquisition
1,223 1,216 
Other current liabilities16,914 15,108 
Accounts payable, accrued expenses and other current liabilities$107,195 $139,427 

The components of other liabilities are as follows (in thousands):
December 31,
2025		December 31,
2024
Contingent consideration liability from acquisition$— $953 
Other liabilities11,735 14,526 
Other liabilities$11,735 $15,479 
v3.25.4
Debt, Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Debt, Commitments and Contingencies Disclosure [Abstract]  
Debt, Commitments and Contingencies Debt, Commitments and Contingencies
The debt, commitments and contingencies described below would require us, or our subsidiaries, to make payments to third parties under certain circumstances.

Convertible Senior Notes - 2026 Notes

On January 20, 2021, we issued $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026, in a private placement to qualified institutional buyers, or the 2026 Notes. The terms of the 2026 Notes are governed by an Indenture, or the 2026 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank National Association, as trustee. The 2026 Notes are senior unsecured obligations that do not bear regular interest and the principal amount of the 2026 Notes will not accrete. The 2026 Notes may bear special interest under specified circumstances related to our failure to comply with our reporting obligations under the 2026 Indenture. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2021. We received proceeds from the issuance of the 2026 Notes of $484.3 million, net of $15.7 million of transaction fees and other debt issuance costs.
We may redeem for cash, all or any portion of the 2026 Notes, at our option, on or after January 20, 2024, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2026 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. No sinking fund is provided for the 2026 Notes.

The 2026 Notes were convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 15, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2026 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2026 Notes on each such trading day; (3) if we call any or all of the 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2026 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2026 Indenture.

On or after August 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2026 Notes, holders of the 2026 Notes could have converted all or any portion of their 2026 Notes at any time, regardless of the foregoing conditions. Upon conversion, prior to August 15, 2025, we had the ability to satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It was our intent to settle the principal amount of the 2026 Notes with cash. On or after August 15, 2025, we must pay cash to satisfy the principal portion of our conversion obligation and must deliver shares to satisfy any excess conversion value. The initial conversion rate for the 2026 Notes is 6.7939 shares of our common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of $147.19 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2026 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2026 Notes or if we deliver a notice of redemption in respect of the 2026 Notes, we will, under certain circumstances, increase the conversion rate of the 2026 Notes for a holder who elects to convert its 2026 Notes (or any portion thereof) in connection with such a corporate event or convert its 2026 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2026 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2026 Indenture), subject to certain exceptions and except as described in the 2026 Indenture, holders may require us to repurchase for cash all or any portion of their 2026 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date.

The 2026 Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2026 Notes become automatically due and payable.

We used some of the proceeds to repay the $110.0 million outstanding principal balance under our credit facility and also used some of the proceeds to pay accrued interest, fees and expenses related to our credit facility, which was terminated effective January 20, 2021. We are using the remaining net proceeds from the issuance of the 2026 Notes for working capital and other general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies.

We account for the 2026 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes at a rate of 0.6%.

As of December 31, 2025 and 2024, the fair value of our 2026 Notes was $499.1 million and $473.8 million, respectively. The fair value was determined based on the quoted price of the 2026 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $51.02 on the last trading day of the quarter, the if-converted value of the 2026 Notes did not exceed the principal amount of $500.0 million as of December 31, 2025.
The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):
December 31,
2025		December 31,
2024
Principal$500,000 $500,000 
Unamortized debt issuance costs(133)(3,319)
Net carrying amount$499,867 $496,681 

Interest expense related to the 2026 Notes is as follows (in thousands):
Year Ended December 31,
202520242023
Amortization of debt issuance costs$3,186 $3,166 $3,145 
Total interest expense$3,186 $3,166 $3,145 

See Note 21 for details on our payment of the 2026 Notes upon maturity on January 15, 2026.

Convertible Senior Notes - 2029 Notes

On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes. The terms of the 2029 Notes are governed by an Indenture, or the 2029 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are senior unsecured obligations that bear interest at a rate of 2.25% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024, and the principal amount of the 2029 Notes will not accrete. We received proceeds from the issuance of the 2029 Notes of $485.2 million, net of $14.8 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2029 Notes (subject to the partial redemption limitation described below), at our option, on or after June 7, 2027, at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2029 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. If we redeem less than all the 2029 Notes, at least $75.0 million aggregate principal amount of the 2029 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. No sinking fund is provided for the 2029 Notes.

The 2029 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding January 1, 2029, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2029 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2029 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2029 Notes on each such trading day; (3) if we call any or all of the 2029 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2029 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2029 Indenture.

On or after January 1, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2029 Notes, holders of the 2029 Notes may convert all or any portion of their 2029 Notes at any time, regardless of the foregoing conditions. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the 2029 Notes with cash. The initial conversion rate for the 2029 Notes is 11.4571 shares of our common stock per $1,000 principal amount of 2029 Notes, which is equivalent to an initial conversion price of $87.28 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if we deliver a notice of redemption in respect of some or all of the 2029 Notes, we will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with
such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2029 Indenture), subject to certain exceptions and except as described in the 2029 Indenture, holders may require us to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

The 2029 Indenture includes customary covenants and sets forth certain events of default after which the 2029 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2029 Notes become automatically due and payable.

We used $63.1 million of the net proceeds from the 2029 Notes to pay the cost of the capped call transactions described below and used $75.0 million to repurchase 1,117,068 shares of our common stock concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors. We are using the remaining net proceeds from the issuance of the 2029 Notes for general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies, other repurchases of our common stock, and for working capital, operating expenses and capital expenditures.

We account for the 2029 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2029 Notes at a rate of 2.9%.

As of December 31, 2025 and 2024, the fair value of our 2029 Notes was $477.3 million and $496.7 million, respectively. The fair value was determined based on the quoted price of the 2029 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $51.02 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $500.0 million as of December 31, 2025.

The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands):
December 31,
2025		December 31,
2024
Principal$500,000 $500,000 
Unamortized debt issuance costs(10,359)(13,204)
Net carrying amount$489,641 $486,796 

Interest expense related to the 2029 Notes is as follows (in thousands):
Year Ended December 31,
20252024
Interest expense
$11,250 $6,593 
Amortization of debt issuance costs2,845 1,630 
Total interest expense$14,095 $8,223 

Capped Call – 2029 Notes

In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. The cap price of the capped call transactions is initially $134.28 per share of our common stock, which represents a premium of 100% over the closing price of our common stock on the Nasdaq Global Select Market on May 28, 2024, and is subject to certain adjustments under the terms of the capped call transactions. The exercise price is $87.28 per share of common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2029 Notes.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.
The capped call transactions are generally expected to reduce the potential dilution to holders of our common stock upon any conversion of the 2029 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

Acquired Debt - EBS

On January 18, 2023, one of our wholly-owned subsidiaries acquired 100% of the issued and outstanding shares of capital stock of EBS. As part of this acquisition we acquired $2.9 million of outstanding debt, which had decreased to zero as of December 31, 2023.

Commitments and Contingencies

Indemnification Agreements

We have various agreements that may obligate us to indemnify the other party to the agreement with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business. Although we cannot predict the maximum potential amount of future payments that may become due under these indemnification agreements, we do not believe any potential liability that might arise from such indemnity provisions is probable or material.

Legal Proceedings

On January 10, 2022, EcoFactor, Inc., or EcoFactor, filed a lawsuit against us in U.S. District Court, District of Oregon, alleging Alarm.com’s products and services directly and indirectly infringe five U.S. patents owned by EcoFactor. EcoFactor is seeking a permanent injunction, enhanced damages and attorneys' fees. EcoFactor had previously asserted two of the same patents against us in an October 2019 complaint with the U.S. International Trade Commission, or ITC. In July 2021, the ITC found in favor of Alarm.com. EcoFactor appealed the decision but withdrew its appeal in December 2021. We moved to dismiss the Oregon case for failure to state a claim on March 28, 2022. On April 18, 2022, the district court stayed the case at the request of the parties pending the disposition of other proceedings involving the asserted patents. These proceedings include four ex parte reexamination proceedings at the U.S. Patent and Trademark Office and one inter partes review. Three of the patents were found unpatentable in reexamination. The decision with respect to one of the patents was affirmed by the United States Court of Appeals for the Federal Circuit, or Federal Circuit, on January 21, 2026, EcoFactor filed an appeal of the decision with respect to the second patent with the Federal Circuit on November 20, 2025, and EcoFactor is appealing the rejection of the third patent to the Patent Trial and Appeal Board, or PTAB, having filed its appeal brief on June 10, 2024. Ex parte reexamination of a fourth patent concluded on August 23, 2023 after the claims were amended. On April 18, 2022, all claims of a fifth patent were found unpatentable by the PTAB in inter partes review, and all claims were canceled on February 1, 2024.

Should EcoFactor prevail in its lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to EcoFactor’s claims, the outcome of these legal claims cannot be predicted with certainty and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

On July 22, 2021, Causam Enterprises, Inc., or Causam, filed a lawsuit against us in U.S. District Court, Western District of Texas, alleging that Alarm.com’s smart thermostats infringe four U.S. patents owned by Causam. Causam is seeking preliminary and permanent injunctions, enhanced damages and attorneys’ fees. Causam had previously asserted the same four patents against us in a July 2021 complaint with the ITC. In February 2023, the ITC found in favor of Alarm.com and Causam’s appeal of the decision with respect to one patent was dismissed as moot on October 15, 2025 based on the Federal Circuit’s affirmance, on the same day, of a PTAB decision that found the patent at issue in the appeal is invalid. Separately, the Federal Circuit affirmed a PTAB decision finding a second of the asserted patents invalid on September 5, 2025. Before we responded to Causam’s district court complaint, the court issued a stay of the case until the ITC investigation was finally resolved. Now that the appeal proceedings have been completed in the ITC investigation, Causam may seek to pursue the district court lawsuit.

Should Causam choose to pursue the district court lawsuit, and prevail, then we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to Causam’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an
adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

On July 3, 2025, SkyBell Technologies, Inc., or SkyBell, filed a lawsuit against us in U.S. District Court, Eastern District of Virginia, alleging that Alarm.com misappropriated SkyBell’s trade secrets relating to video doorbells. SkyBell is seeking injunctive relief, enhanced damages, attorneys’ fees, a constructive trust, and an order that Alarm.com assign to SkyBell the alleged trade secrets. On August 25, 2025, we moved to dismiss the complaint as barred by the statute of limitations.

Should SkyBell prevail in its lawsuit, we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us, and we could be required to assign, transfer, and return any SkyBell trade secret that we are found to improperly possess. While we believe we have valid defenses to SkyBell’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

In addition to the matters described above, we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions.

We may also be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business.

Other than the preceding matters, we are not a party to any lawsuit or proceeding that, in the opinion of management, is reasonably possible or probable of having a material adverse effect on our financial position, results of operations or cash flows. We reserve for contingent liabilities based on ASC 450, "Contingencies," when it is determined that a liability, inclusive of defense costs, is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, we will not incur material costs.
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Authorized shares

We are authorized to issue two classes of stock, common stock and preferred stock. On June 9, 2015, the board of directors amended and restated our Amended and Restated Certificate of Incorporation, effective upon the closing of our initial public offering, or IPO, on July 1, 2015, and authorized us to issue up to 300,000,000 shares of common stock and 10,000,000 shares of undesignated preferred stock.

Common and Preferred Stock

As of December 31, 2025 and 2024, there were 53,540,939 and 52,756,077 shares of common stock issued, and 49,630,714 and 49,618,346 shares of common stock outstanding, respectively. As of December 31, 2025 and 2024, there were no preferred shares issued and outstanding. Each outstanding share of common stock is entitled to one vote per share.

Stock Repurchase Programs

On December 3, 2020, our board of directors authorized a stock repurchase program, under which we were authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the three-year period ending December 3, 2023. On February 15, 2023, our board of directors authorized the cancellation of the balance under the stock repurchase program ending December 3, 2023, and also authorized a stock repurchase program, effective February 23, 2023, under which we were authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending February 23, 2025.

On May 24, 2024, our board of directors authorized the repurchase of our common stock in connection with the issuance of the 2029 Notes, the cancellation of the balance under the stock repurchase program ending February 23, 2025, and also authorized a stock repurchase program, effective May 31, 2024, under which we are authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending May 31, 2026.
During the year ended December 31, 2025, we repurchased 772,494 shares of our common stock for $41.6 million under the stock repurchase program, effective May 24, 2024. During the year ended December 31, 2024, we repurchased 1,117,068 shares of our common stock for $75.0 million concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors. During the year ended December 31, 2023, we repurchased 487,918 shares of our common stock under our stock repurchase program that was subsequently canceled effective May 31, 2024 for $27.3 million, which includes applicable commissions and fees.

We are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022. When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the consolidated balance sheets.

Shares Withheld

As permitted under the terms of the 2025 Plan, we may withhold shares of common stock in connection with the vesting of restricted stock unit awards issued to employees to satisfy applicable tax withholding requirements. These withheld shares are not issued or considered common stock repurchases under our stock repurchase program. We paid $3.4 million and $2.6 million of tax withholdings related to vesting of restricted stock units during the years ended December 31, 2024 and 2023, respectively. No tax withholdings related to the vesting of restricted stock units were paid during the year ended December 31, 2025. We also utilized the sell-to-cover method in which shares of our restricted stock unit awards were sold into the market on behalf of the employee upon vesting to cover tax withholding liabilities. We may utilize either the withholding method or sell-to-cover method in the future.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-based compensation expense is included in the following line items in the consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Cost of hardware and other revenue
$— $2 $5 
Sales and marketing2,441 2,833 3,522 
General and administrative10,474 13,080 13,028 
Research and development20,275 25,327 30,728 
Total stock-based compensation expense$33,190 $41,242 $47,283 

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):
 Year Ended December 31,
 202520242023
Stock options$3,902 $4,237 $4,166 
Restricted stock units29,082 36,792 42,924 
Employee stock purchase plan206 213 193 
Total stock-based compensation expense$33,190 $41,242 $47,283 
Tax (shortfall) / windfall benefit from stock-based awards
$(1,025)$1,829 $(508)

2025 Equity Incentive Plan
    
We issue stock options pursuant to our 2025 Plan. The 2025 Plan allows for the grant of stock options to employees and for the grant of nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, or RSUs, performance-based stock awards, and other forms of equity compensation to our employees, directors and non-employee directors.

On April 17, 2025, our board of directors adopted, and on June 4, 2025, our stockholders approved, our 2025 Plan. The 2025 Plan provides that (i) no new awards may be granted under the 2015 Equity Incentive Plan, or 2015 Plan, as of June 4, 2025, although awards granted under the 2015 Plan prior to June 4, 2025, will remain outstanding in accordance with their terms and those of the 2015 Plan, and (ii) the shares of common stock that were available for grant under the 2015 Plan but were unissued as of June 4, 2025, became available for issuance pursuant to awards granted under the 2025 Plan. Additionally, no
further grants may be made under the Amended and Restated 2009 Stock Incentive Plan, or the 2009 Plan. As of December 31, 2025, 10,774,498 shares remained available for future grant under the 2025 Plan.

Stock Options

Stock options under the 2025 Plan and the 2015 Plan have been granted at exercise prices based on the closing price of our common stock on the date of grant. Stock options under the 2009 Plan were granted at exercise prices as determined by the board of directors to be the fair market value of our common stock. Our stock options generally vest over a five-year period and each option, if not exercised or forfeited, expires on the tenth anniversary of the grant date.

Certain stock options granted under the 2025 Plan and previously granted under the 2015 Plan and 2009 Plan may be exercised before the options have vested. Unvested shares issued as a result of early exercise are subject to repurchase by us upon termination of employment or services at the original exercise price. The proceeds from the early exercise of stock options are initially recorded as a current liability and are reclassified to common stock and additional paid-in capital as the awards vest and our repurchase right lapses. There were no unvested shares of common stock outstanding subject to our right of repurchase as of December 31, 2025 and 2024. We did not repurchase any unvested shares of common stock related to early exercised stock options in connection with employee terminations during the years ended December 31, 2025, 2024 and 2023. There were no proceeds from the early exercise of the unvested stock options reflected in accounts payable, accrued expenses and other current liabilities on our consolidated balance sheets as of December 31, 2025 and 2024.

We account for stock-based compensation options based on the fair value of the award as of the grant date. We recognize stock-based compensation expense using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche.

We value our stock options using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected term, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of our stock options. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted. The expected volatility for options granted is based on historical volatilities of our stock over the estimated expected term of the stock options.

There were 145,500, 138,750 and 237,400 stock options granted during the years ended December 31, 2025, 2024 and 2023, respectively. We declared and paid dividends in June 2015 in anticipation of our IPO, which we closed on July 1, 2015. Subsequent to the IPO, we do not expect to declare or pay dividends on a recurring basis. As such, we assume that the dividend rate is 0%.

The following table summarizes the assumptions used for estimating the fair value of stock options granted:
 Year Ended December 31,
 202520242023
Volatility
39.0 - 39.3%
39.7 - 41.1%
40.9 - 41.9%
Expected term
5.6 - 5.7 years
5.5 - 5.6 years
5.4 - 5.6 years
Risk-free interest rate
3.7 - 4.2%
3.7 - 4.4%
3.3 - 4.4%
Dividend rate— %— %— %
The following table summarizes stock option activity:
Number of
Options		Weighted
Average Exercise
Price Per Share		Weighted Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20241,123,860 $50.74 5.8$14,974 
Granted145,500 57.29 
Exercised(120,525)22.21 3,936 
Forfeited(51,552)66.07 
Expired(171)11.55 
Outstanding as of December 31, 20251,097,112 $54.02 5.8$5,187 
Vested and expected to vest as of December 31, 20251,097,112 $54.02 5.8$5,187 
Exercisable as of December 31, 2025649,482 $50.06 4.2$5,182 

The weighted average grant date fair value for our stock options granted during the years ended December 31, 2025, 2024 and 2023 was $24.94, $29.16 and $23.01, respectively. The total fair value of stock options vested during the years ended December 31, 2025, 2024 and 2023 was $3.8 million, $4.2 million and $3.3 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2025, 2024 and 2023 was $3.9 million, $9.3 million and $5.6 million, respectively. As of December 31, 2025, the total compensation cost related to nonvested awards not yet recognized was $5.1 million, which will be recognized over a weighted average period of 2.2 years. Cash received from exercises of stock options was $2.7 million, $8.3 million and $2.0 million during the years ended December 31, 2025, 2024 and 2023, respectively.

Restricted Stock Units

There was an aggregate of 709,762, 628,394 and 558,747 RSUs without performance conditions granted to certain of our employees and directors during the years ended December 31, 2025, 2024 and 2023, respectively. There were 25,205 RSUs with performance conditions granted during the year ended December 31, 2025. There were no RSUs with performance conditions granted during the years ended December 31, 2024 and 2023. The time-based RSUs vest over a five-year period from the vesting commencement date, which is generally the grant date. The performance-based RSUs vest when the related performance conditions are met. Vested RSUs include the amount of shares withheld to satisfy tax withholding requirements to be paid by us on behalf of our employees, when applicable. We account for RSUs based on the fair value of the award as of the grant date. We recognize stock-based compensation expense for time-based RSUs using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the grant date to the vesting date for that tranche. The condition for vesting of the RSUs is based on continued employment. We recognize stock-based compensation expense for performance-based RSUs based on management’s determination of the probable outcome of the performance conditions and we record a cumulative adjustment in periods in which there is a change in the estimated number of shares expected to vest. As of December 31, 2025, the total unrecognized compensation expense related to RSUs without performance conditions was $53.2 million, which is expected to be recognized over a weighted average period of 2.5 years. As of December 31, 2025, the total unrecognized compensation expense related to RSUs with performance conditions was $1.3 million, which is expected to be recognized over a weighted average period of 2.2 years.

The following table summarizes RSU activity:
RSUs without Performance ConditionsRSUs with Performance Conditions
Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)		Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20241,819,320 $64.97 $110,615 154,361 $80.83 $9,385 
Granted709,762 53.15 25,205 49.97 
Vested(565,058)65.83 31,561 (61,895)74.15 3,329 
Forfeited(184,340)62.31 (9,799)85.35 
Outstanding as of December 31, 20251,779,684 $60.25 $90,799 107,872 $77.05 $5,504 
Vested and expected to vest as of December 31, 20251,779,684 $60.25 $90,799 55,872 $69.82 $2,851 
The weighted average grant date fair value for our RSUs without performance conditions granted during the years ended December 31, 2025, 2024 and 2023 was $53.15, $65.29 and $55.40, respectively. The weighted average grant date fair value for our RSUs with performance conditions granted during the year ended December 31, 2025 was $49.97. The total fair value of RSUs without performance conditions vested during the years ended December 31, 2025, 2024 and 2023 was $37.2 million, $37.0 million and $45.3 million, respectively. The total fair value of RSUs with performance conditions vested during the years ended December 31, 2025, 2024 and 2023 was $4.6 million, $2.0 million and $3.2 million, respectively.

Employee Stock Purchase Plan

Our board of directors adopted our 2015 ESPP in June 2015. As of December 31, 2025, 1,831,595 shares have been reserved for future grant under the 2015 ESPP. The 2015 ESPP allows eligible employees to purchase shares of our common stock at 90% of the fair market value, rounded up to the nearest cent, based on the closing price of our common stock on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year shall not exceed such number of shares having a fair market value equal to the lesser of $15,000 or 10% of the participant's base compensation for that year.

The 2015 ESPP is considered compensatory for purposes of share-based compensation expense due to the 10% discount on the fair market value of the common stock. An aggregate of 34,449, 29,946 and 33,639 shares were purchased by employees for the years ended December 31, 2025, 2024 and 2023, respectively, for which we recognized $0.2 million of compensation expense during each of those years. Compensation expense is recognized for the amount of the discount, net of actual forfeitures and voluntary withdrawals, over the six-month purchase period.
v3.25.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):
 Year Ended December 31,
Numerator: 202520242023
Net income$131,628 $122,513 $80,340 
Net loss attributable to redeemable noncontrolling interests946 1,603 703 
Net income attributable to common stockholders - basic (A)132,574 124,116 81,043 
Add back total interest expense, net of tax, attributable to convertible senior notes
12,098 8,573 2,367 
Net income attributable to common stockholders - diluted (B)
$144,672 $132,689 $83,410 
Denominator:
Weighted average common shares outstanding — basic (C)49,795,191 49,641,763 49,818,448 
Dilutive effect of convertible senior notes, stock options and restricted stock units9,128,624 8,351,256 4,806,986 
Weighted average common shares outstanding — diluted (D)58,923,815 57,993,019 54,625,434 
Net income attributable to common stockholders per share:
Basic (A/C)$2.66 $2.50 $1.63 
Diluted (B/D)$2.46 $2.29 $1.53 

The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:
 Year Ended December 31,
 202520242023
Stock options774,004 579,678 626,976 
Restricted stock units11,300 1,700 255,325 

Our redeemable noncontrolling interests relate to our 89% equity ownership interest in OpenEye, our 99% equity ownership interest in Noonlight and our 81% equity ownership interest in CHeKT. See Note 2 for details on the put options and call options contained in the OpenEye, Noonlight and CHeKT stockholder agreements.
We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. On or after August 15, 2025, we must pay cash to satisfy the principal portion of our conversion obligation and must deliver shares to satisfy any excess conversion value on the 2026 Notes. As a result, we included 2,103,317 shares related to the 2026 Notes and 5,728,550 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share for the year ended December 31, 2025. We included 3,396,950 and 3,365,132 shares related to the 2026 and 2029 Notes, respectively, within the weighted averages shares outstanding when calculating the diluted net income per share for the year ended December 31, 2024. We included 3,396,950 shares related to the 2026 Notes within the weighted averages shares outstanding when calculating the diluted net income per share for the year ended December 31, 2023. Additionally, we included $12.1 million, $8.6 million and $2.4 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Significant Service Providers and Distributors
 12 Months Ended
Dec. 31, 2025
Risks and Uncertainties [Abstract]  
Significant Service Providers and Distributors Significant Service Providers and Distributors
During the years ended December 31, 2025, 2024 and 2023, our 10 largest revenue service provider partners or distributors accounted for 45%, 46% and 50% of our consolidated revenue, respectively. One of our service provider partners within the Alarm.com segment individually represented greater than 15% but not more than 20% of our revenue for the years ended December 31, 2025, 2024 and 2023.

No service provider partners represented more than 10% of accounts receivable as of December 31, 2025 or 2024.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of our income before income taxes are as follows (in thousands):
Year Ended December 31,
202520242023
Domestic$157,866 $138,111 $97,453 
Foreign8,740 3,563 372 
Total$166,606 $141,674 $97,825 

The components of our income tax expense are as follows (in thousands):
Year Ended December 31,
202520242023
Current
Federal$(5,201)$40,131 $51,923 
State8,268 10,561 11,577 
Foreign4,579 3,098 1,715 
Total Current7,646 53,790 65,215 
Deferred
Federal30,383 (29,307)(40,519)
State(440)(5,277)(6,986)
Foreign31 88 (225)
Total Deferred29,974 (34,496)(47,730)
Total$37,620 $19,294 $17,485 
The difference between the income tax expense at the federal statutory rate and income tax expense in the consolidated statements of operations is as follows:
Year Ended December 31,
202520242023
Amount
Percentage
Amount
Percentage
Amount
Percentage
U.S. Federal Statutory Tax Rate
$34,987 21.0 %$29,779 21.0 %$20,543 21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effect(1)
6,249 3.8 4,587 3.2 3,654 3.7 
Foreign Tax Effects
2,924 1.8 2,553 1.8 1,442 1.6 
Effect on Changes in Tax Laws or Rates Enacted in Current Period
— — — — — — 
Effect of Cross-Border Tax Laws
1,017 0.6 (4,720)(3.3)(4,288)(4.4)
Foreign Derived Intangible Income
4 — (4,844)(3.4)(4,288)(4.4)
Global Intangible Low-Taxed Income
1,013 0.6 124 0.1 — — 
Tax Credits
(11,279)(6.7)(14,236)(10.0)(7,005)(7.2)
Federal Research and Development Tax Credits
(11,279)(6.7)(14,236)(10.0)(7,005)(7.2)
Changes in Valuation Allowances
— — — — 44 — 
Nontaxable or Nondeductible Items
3,072 1.8 1,637 1.2 2,819 2.9 
Changes in Unrecognized Tax Benefits
83 — (320)(0.3)261 0.3 
Other Adjustments
567 0.3 14 — 15 — 
Effective Tax Rate
$37,620 22.6 %$19,294 13.6 %$17,485 17.9 %
_______________
(1)In 2025, state taxes in Virginia, Illinois, Pennsylvania, Florida and Utah made up the majority (greater than 50%) of the tax effect in this category. In 2024, state taxes in Virginia, Florida, Illinois and New York made up the majority (greater than 50%) of the tax effect in this category. In 2023, state taxes in Virginia, Pennsylvania and Massachusetts made up the majority (greater than 50%) of the tax effect in this category.

The components of our cash paid for income taxes, net of refunds are as follows (in thousands):
Year Ended December 31,
202520242023
Federal
$30,080 $52,686 $50,973 
State
13,445 12,990 12,345 
Foreign
1,862 2,535 1,259 
Total$45,387 $68,211 $64,577 

Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions (in thousands):
Year Ended December 31,
202520242023
Virginia(2)
$6,570 $4,787 $— 
_______________
(2)In 2023, no state jurisdictions had income taxes paid (net of refunds) that exceeded 5%.
The components of our net deferred tax assets (liabilities) are as follows (in thousands):
December 31,
20252024
Deferred tax assets, non-current
Provision for credit losses on accounts receivable$1,873 $1,459 
Depreciation316 292 
Accrued expenses8,473 6,615 
Deferred revenue3,451 2,997 
Operating lease liabilities18,849 18,149 
Stock-based compensation16,799 20,060 
Acquisition costs1,803 1,852 
Inventory reserve679 566 
Net operating losses4,850 1,610 
Tax credits4,470 4,334 
Capitalized research and development expenditures113,933 135,619 
Capped call premium
10,661 13,416 
Other2,123 3,430 
Total deferred tax assets, non-current prior to valuation allowance188,280 210,399 
Valuation allowance(5,632)(5,012)
Total deferred tax assets, non-current, net of valuation allowance182,648 205,387 
Deferred tax liabilities, non-current
Intangible assets and prepaid patent licenses(7,273)(2,574)
Operating lease right-of-use assets(13,002)(13,199)
Depreciation(7,787)(5,953)
Sales commissions(1,858)(1,706)
Equity investments (27)(161)
Other deferred tax liabilities
(446)(510)
Total deferred tax liabilities, non-current(30,393)(24,103)
Net deferred tax assets, non-current$152,255 $181,284 

A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):
Year Ended December 31,
202520242023
Beginning balance$9,124 $9,063 $7,596 
Additions based on tax positions of the current year1,693 1,978 1,589 
Additions based on tax positions of prior year289 617 204 
Decreases based on tax positions of prior year(57)(2)(205)
Decreases for tax positions taken in the prior year due to settlement
— (2,220)— 
Decreases due to lapse of applicable statute of limitations(1,257)(312)(121)
Ending balance$9,792 $9,124 $9,063 

On July 4, 2025, Public Law 119-21, commonly referred to as One Big Beautiful Bill Act, or OBBBA, was enacted in the United States. The OBBBA includes a broad range of tax provisions that impact the timing and the magnitude of certain key tax deductions. The most significant provisions to us are the permanent reinstatement of the full and immediate deduction for domestic research and development expenditures in the year such costs are incurred and the 100% first-year bonus depreciation
deduction, with both provisions reducing our associated deferred tax assets. We currently anticipate these provisions will significantly reduce our current federal income tax cash outlays over the next several years. Certain other international tax provisions may also be favorable to us beginning in 2026.

We recorded a current federal tax benefit of $47.9 million based on our intent to deduct all 2025 domestic research and development expenditures, which resulted in a reduction of the current income tax payable of approximately $47.9 million and a corresponding decrease in the deferred tax asset. In addition, we generated $5.8 million in excess federal research and development tax credits in 2025. We will carryback this excess credit to 2024 and offset 2024 federal taxes, resulting in a 2025 current tax benefit.

Our effective income tax rates were 22.6%, 13.6% and 17.9% for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2025, the effective tax rate was above the 21.0% statutory rate primarily due to the impact of state taxes, foreign withholding taxes and other nondeductible expenses, partially offset by the impact of 2025 research and development tax credits claimed and a favorable true-up adjustment of our 2024 income tax provision estimate associated with research and development tax credits. For the year ended December 31, 2024, the effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed, the foreign derived intangible income deduction, tax windfall benefits from employee stock-based compensation and a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, partially offset by the impact of state taxes, foreign withholding taxes and other nondeductible expenses. For the year ended December 31, 2023, the effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed and the foreign derived intangible income deduction, partially offset by the impact of state taxes, foreign withholding taxes, federal estimated tax payment interest expense, other nondeductible expenses and a stock-based compensation tax shortfall.

We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Our valuation allowance for state research and development tax credit carryforwards, net deferred tax assets of our EBS subsidiary, state net operating losses and an unrealized U.S. federal capital loss was $5.6 million, $5.0 million and $3.8 million as of December 31, 2025, 2024 and 2023, respectively.

We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. We recorded a net increase to the unrecognized tax benefits liability, excluding penalties and interest, of $0.7 million primarily due to a liability for research and development tax credits claimed, partially offset by the release of a federal unrecognized tax benefit liability due to the statute of limitations expiration during the year ended December 31, 2025. We recorded a net increase to the unrecognized tax benefits liability of $0.1 million, primarily due to a liability for research and development tax credits claimed, partially offset by the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination and the release of a state unrecognized tax benefit liability due to the statute of limitations expiration during the year ended December 31, 2024. We recorded a net increase to the unrecognized tax benefits liability of $1.5 million primarily for research and development tax credits claimed during the years ended December 31, 2023.

Our unrecognized tax benefits as of December 31, 2025 and 2024 includes unrecognized tax benefits of $9.8 million and $9.1 million, respectively, that if recognized, would reduce our income tax expense and effective tax rate.

As of December 31, 2025 and 2024, our consolidated balance sheets included a $1.2 million and $0.9 million accrual for total interest expense related to unrecognized tax benefits and penalties, respectively. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

As of December 31, 2025, we had gross U.S. federal net operating loss carryforwards of $16.1 million, which will begin to expire in 2031. As of December 31, 2025, we had state net operating loss carryforwards of $22.3 million, which will begin to expire in 2031. As of December 31, 2025, we had $0.1 million of federal research and development tax credit carryforwards that will begin to expire in 2041. As of December 31, 2025, we had state research and development tax credit carryforwards of $5.2 million, which will begin to expire in 2032. The federal net operating loss carryforward arose in connection with the 2013 acquisition of EnergyHub and the 2025 acquisitions of CHeKT and BTR. Utilization of the acquired EnergyHub, CHeKT and BTR net operating loss carryforwards are subject to annual limitations due to ownership change limitations as provided by the Internal Revenue Code of 1986, as amended.

Our tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. On October 13, 2021, the Internal Revenue Service commenced an examination of our federal income tax return for 2018 and on August 12, 2022, the Internal Revenue Service expanded the examination to include our federal income tax return for 2019. On January 25, 2024, the Internal Revenue Service notified us that the income tax examination of our 2018 and 2019 federal income tax returns has been closed. As a result, we paid $0.6 million in additional federal taxes, including interest,
during the three months ended June 30, 2024, and recognized a net income tax benefit of $1.7 million during the three months ended March 31, 2024.

As of December 31, 2025, we did not have material undistributed foreign earnings. We have not historically recorded a deferred tax liability on the undistributed earnings from our foreign subsidiaries, as such earnings are considered to be indefinitely reinvested. During the three months ended September 30, 2025, we changed this assertion with respect to a portion of the 2024 and 2025 current earnings of our Canadian business to begin providing deferred taxes on such earnings, the tax impact of which was not material.
v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have two reportable segments:

•Alarm.com segment

•Other segment

Our chief operating decision maker is our chief executive officer. Management determined the operational data used by the chief operating decision maker is that of the two reportable segments. Management bases strategic goals and decisions on these segments and the data presented below is used to measure financial results.

Our Alarm.com segment represents our cloud-based platform and licenses and services on our non-hosted software platform for intelligently connected properties and related solutions that contributed 91%, 92% and 93% of our revenue, net of intersegment eliminations, for the years ended December 31, 2025, 2024 and 2023, respectively. Our Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets. Inter-segment revenue includes sales of hardware between our segments.

Management evaluates the performance of its segments and allocates resources to them based on operating income / (loss) as compared to prior periods and current performance levels. The reportable segment operational data is presented in the tables below (in thousands):
Year Ended December 31, 2025
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$605,261 $84,136 $— $— $689,397 
Hardware and other revenue314,389 11,599 (2,928)(1,270)321,790 
Total revenue
919,650 95,735 (2,928)(1,270)1,011,187 
Cost of SaaS and license revenue
69,986 26,214 354 (354)96,200 
Cost of hardware and other revenue
239,561 10,871 (2,871)(1,466)246,095 
Total cost of revenue
309,547 37,085 (2,517)(1,820)342,295 
Selling and marketing expense
98,039 25,749 — — 123,788 
General and administrative expense
102,647 7,771 — — 110,418 
Research and development expense
238,925 31,304 — — 270,229 
Amortization and depreciation expense
28,813 2,006 — — 30,819 
Total operating expenses
468,424 66,830 — — 535,254 
Operating income / (loss)$141,679 $(8,180)$(411)$550 $133,638 
Total assets
$2,181,210 $190,095 $(234,681)$(33)$2,136,591 
Reconciliation of operating income to income before income taxes
Operating income$133,638 
Interest expense(17,294)
Interest income45,617 
Other income / (expense), net4,645 
Income before income taxes$166,606 
Year Ended December 31, 2024
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$564,513 $66,685 $— $— $631,198 
Hardware and other revenue306,074 5,979 (2,769)(655)308,629 
Total revenue870,587 72,664 (2,769)(655)939,827 
Cost of SaaS and license revenue 68,666 20,809 329 (292)89,512 
Cost of hardware and other revenue 234,414 5,414 (2,630)(561)236,637 
Total cost of revenue 303,080 26,223 (2,301)(853)326,149 
Selling and marketing expense 88,899 22,343 — — 111,242 
General and administrative expense 101,401 7,478 — — 108,879 
Research and development expense 227,559 28,319 — — 255,878 
Amortization and depreciation expense 28,107 1,024 — — 29,131 
Total operating expenses445,966 59,164 — — 505,130 
Operating income / (loss)$121,541 $(12,723)$(468)$198 $108,548 
Total assets$2,081,214 $85,468 $(128,465)$(9)$2,038,208 
Reconciliation of operating income to income before income taxes
Operating income$108,548 
Interest expense(11,426)
Interest income47,359 
Other income / (expense), net(2,807)
Income before income taxes$141,674 
Year Ended December 31, 2023
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$514,673 $54,527 $— $— $569,200 
Hardware and other revenue309,778 6,501 (3,201)(596)312,482 
Total revenue
824,451 61,028 (3,201)(596)881,682 
Cost of SaaS and license revenue
71,639 17,852 (2,967)(626)85,898 
Cost of hardware and other revenue
237,660 5,760 (3,771)(388)239,261 
Total cost of revenue
309,299 23,612 (6,738)(1,014)325,159 
Selling and marketing expense
82,672 17,554 — — 100,226 
General and administrative expense
107,475 5,935 (480)— 112,930 
Research and development expense
220,106 25,008 — — 245,114 
Amortization and depreciation expense
30,337 1,087 — — 31,424 
Total operating expenses
440,590 49,584 (480)— 489,694 
Operating income / (loss)$74,562 $(12,168)$4,017 $418 $66,829 
Reconciliation of operating income to income before income taxes
Operating income$66,829 
Interest expense(3,429)
Interest income29,801 
Other income / (expense), net4,624 
Income before income taxes$97,825 

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $17.7 million, $20.3 million and $23.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. There was no software license revenue recorded for the Other segment during the years ended December 31, 2025, 2024 and 2023. Cash additions to property and equipment were $16.2 million, $10.0 million and $7.4 million for the Alarm.com segment for the years ended December 31, 2025, 2024 and 2023, respectively. Cash additions to property and equipment were less than $0.1 million for the Other segment for the year ended December 31, 2025, and were $0.1 million for the years ended December 31, 2024 and 2023.

We derived substantially all revenue from North America for the years ended December 31, 2025, 2024 and 2023. Substantially all of our long-lived assets were in North America as of December 31, 2025 and 2024.
v3.25.4
Subsequent Event
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
On January 20, 2021, we issued the 2026 Notes. On January 15, 2026, the 2026 Notes matured and on January 14, 2026, we paid $500.0 million in aggregate principal amount to holders of the 2026 Notes, fully settling the outstanding balance. The settlement was funded with cash on hand, consistent with our stated intent, with no shares of common stock issued.
v3.25.4
Schedule II - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts and Reserves
Schedule II
Valuation and Qualifying Accounts and Reserves
(in thousands)
DescriptionBalance at
Beginning of
Year		Additions
Charged
Against
Revenue		Additions
Charged to
Other
Accounts		DeductionsBalance at
End of Year
Year Ended December 31, 2025
Allowance for credit losses on accounts receivable$3,870 $— $2,155 $(854)$5,171 
Allowance for product returns2,448 3,071 — (3,379)2,140 
Allowance for credit losses on notes receivable1 — 748 — 749 
Deferred tax valuation allowance5,012 — 1,529 (909)5,632 
Year Ended December 31, 2024
Allowance for credit losses on accounts receivable$3,864 $— $950 $(944)$3,870 
Allowance for product returns2,279 3,187 — (3,018)2,448 
Allowance for credit losses on notes receivable5 — 3,996 (4,000)1 
Deferred tax valuation allowance3,754 — 2,642 (1,384)5,012 
Year Ended December 31, 2023
Allowance for credit losses on accounts receivable$2,835 $— $1,508 $(479)$3,864 
Allowance for product returns1,551 4,399 — (3,671)2,279 
Allowance for credit losses on notes receivable2 — 3 — 5 
Deferred tax valuation allowance2,591 — 2,204 (1,041)3,754 
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the three months ended December 31, 2025, the following directors or officers (as defined in Rule 16a‑1(f) under the Exchange Act) adopted, modified or terminated a Rule 10b5‑1 trading arrangement (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act:

Name and TitleActionTotal Number of Shares to be Sold Pursuant to the Trading ArrangementAdoption DateTermination Date
Stephen Trundle, Chief Executive Officer
Terminated
Sale of up to 150,000 shares of common stock
August 29, 2023November 17, 2025
Dan Kerzner, President, Platforms Business
Terminated
Sale of up to 53,668 shares of common stock
December 17, 2024November 11, 2025

During the three months ended December 31, 2025, none of our directors or officers adopted, modified or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Stephen Trundle [Member]  
Trading Arrangements, by Individual  
Name Stephen Trundle
Title Chief Executive Officer
Rule 10b5-1 Arrangement Terminated true
Termination Date November 17, 2025
Aggregate Available 150,000
Dan Kerzner [Member]  
Trading Arrangements, by Individual  
Name Dan Kerzner
Title President, Platforms Business
Rule 10b5-1 Arrangement Terminated true
Termination Date November 11, 2025
Aggregate Available 53,668
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Our business is highly dependent on the processing and storage of significant amounts of data, and we have invested and will continue to invest in measures to secure this data. We have implemented and maintain a comprehensive information security program consisting of policies, procedures, and technology designed to maintain the privacy, security and integrity of our data, intellectual property, confidential information, systems and networks. Our information security program is informed by externally established sets of standards, such as those of the National Institute of Standards and Technology and the Center for Internet Security. Among other things, the program includes controls designed to limit and monitor access to our systems, networks and data, prevent inappropriate or unauthorized access or modification, and monitor for threats or vulnerability. We maintain disaster recovery solutions and implement enhancements as necessary and use technologies that assist in preventing theft and abuse of credentials and sensitive data. We also have third parties perform penetration tests as well as security assessments of mobile applications. Our information security program also includes third-party risk management processes that help us oversee and identify risks from our use of third-party service providers. Additionally, we focus our efforts on education and training for employees regarding cybersecurity and implementing security controls for contractors. We also engage consultants to conduct cybersecurity assessments and preparedness analysis. We primarily conduct our business in the United States and are expanding internationally in various other countries. Conducting expanded international operations subjects us to additional risks, including our exposure to cybersecurity incidents.

The risks related to cybersecurity change rapidly, and we aim to update our information security program as frequently as reasonably possible to achieve commercially accepted levels of preparedness. In addition to the core operating environment of Alarm.com, we also have acquired businesses and subsidiaries that in some cases operate data infrastructure that is distinct from the Alarm.com operating environment, and therefore have distinct data security vulnerabilities. The overall management of cybersecurity risk involves coordination between Alarm.com and our acquired businesses and subsidiaries, and data security risks in these entities may be heightened where the technology platform is less mature than the Alarm.com core platform.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our business is highly dependent on the processing and storage of significant amounts of data, and we have invested and will continue to invest in measures to secure this data. We have implemented and maintain a comprehensive information security program consisting of policies, procedures, and technology designed to maintain the privacy, security and integrity of our data, intellectual property, confidential information, systems and networks.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations. Our Information Security team is responsible for assessing, identifying and managing risks from cybersecurity threats. Managing cybersecurity risk has been integrated into our overall risk management system and is a priority that we monitor and review regularly with our board of directors. The Information Security team works closely with our Legal team to make determinations whether a cybersecurity incident has occurred and whether the incident has materially impacted or is reasonably likely to materially impact us. If a cybersecurity incident is deemed material, the incident would be communicated to various members of the Alarm.com leadership team and with the board of directors. The board of directors oversees our overall risk management system, including cybersecurity risks. The Chief Information Officer presents at Board meetings and discusses specific risk areas, including those relating to cybersecurity.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations. Our Information Security team is responsible for assessing, identifying and managing risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] If a cybersecurity incident is deemed material, the incident would be communicated to various members of the Alarm.com leadership team and with the board of directors.
Cybersecurity Risk Role of Management [Text Block] The Information Security team works closely with our Legal team to make determinations whether a cybersecurity incident has occurred and whether the incident has materially impacted or is reasonably likely to materially impact us. If a cybersecurity incident is deemed material, the incident would be communicated to various members of the Alarm.com leadership team and with the board of directors. The board of directors oversees our overall risk management system, including cybersecurity risks. The Chief Information Officer presents at Board meetings and discusses specific risk areas, including those relating to cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations. Our Information Security team is responsible for assessing, identifying and managing risks from cybersecurity threats
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Chief Information Officer presents at Board meetings and discusses specific risk areas, including those relating to cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation

Our consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. Equity investments over which we are able to exercise significant influence but do not control the investee are accounted for using the equity method.

We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity, or VIE. Voting interest entities are entities that have sufficient equity and provide equity investor voting rights that give them power to make significant decisions relating to the entity’s operations. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. In VIEs, a controlling financial interest is attained through means other than voting rights and the entities lack one or more of the characteristics of a voting entity.

We have unconsolidated equity investments in third-party businesses. Equity investments with readily determinable fair values are recorded at fair value. Equity investments without readily determinable fair values are recorded using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. We make a separate election to use the measurement alternative for each eligible investment, and reassess whether an investment qualifies for the alternative at each reporting period. Adjustments resulting from impairment, fair value or observable price changes are recorded in other income / (expense), net in our consolidated statements of operations.
Use of Estimates
Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. The global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval (including the ongoing conflicts in Ukraine, and in the Middle East and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, tariffs, risk of recession and inflation (collectively, the Macroeconomic Conditions). Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, equity method investments, goodwill, intangible assets and other long-lived assets.
Reclassifications
Reclassifications

Certain previously reported amounts in the consolidated statements of operations for the year ended December 31, 2024 have been reclassified to conform to our current presentation to reflect income from equity method investments, net, as a separate line item, which was previously included in other income / (expense), net. Certain previously reported amounts in the consolidated balance sheets for the year ended December 31, 2024 have been reclassified to conform to our current presentation, including the addition of the investments in unconsolidated entities as a separate line item. Certain previously reported amounts in the consolidated statement of cash flows for the years ended December 31, 2024 and 2023 have been
reclassified to conform to our current presentation, including the addition of other adjustments as a separate line item within the adjustments to reconcile net income to net cash flows from the operating activities section.
Cash and Cash Equivalents
Cash and Cash Equivalents
We consider all highly liquid instruments purchased with an original maturity from the date of purchase of three months or less to be cash equivalents.
Accounts Receivable and Notes Receivable
Accounts Receivable
Accounts receivable are principally derived from sales to customers located in the United States and Canada.Our accounts receivable are stated at estimated realizable value.
Notes Receivable
Notes receivable are presented net of an allowance for uncollectibility, if any. We accrue interest on notes receivable based on the contractual terms of the note. Outstanding notes receivable that are aged 30 days or more from the contractual payment date are considered past due. Notes receivable are evaluated for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due.
Restricted Cash
Restricted Cash
We consider all cash reserved for a specific use and not available for immediate or general business use to be restricted cash.
Credit Losses
Credit Losses

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately.

The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern. These risk characteristics are relevant to accounts receivable and notes receivable.

Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the years ended December 31, 2025, 2024 and 2023 we recorded credit loss expense for accounts receivable and notes receivable of $1.9 million, $4.7 million and $1.0 million in general and administrative expense in our consolidated statements of operations, respectively. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.

Credit Losses - Accounts Receivable

We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the years ended December 31, 2025, 2024 and
2023, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the year ended December 31, 2025, as compared to historical periods.

Credit Losses - Notes Receivable

We identified one portfolio segment, loan receivables, for our notes receivable. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable. During the year ended December 31, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with an affiliate entity of one of our distribution partners, or the Affiliate, and reversed the previously allowance for credit losses recorded earlier in 2024. There were no purchases or sales of financial assets during the years ended December 31, 2025 and 2024.

We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income. The accrued interest receivable as of December 31, 2025 and 2024 was $0.7 million and $0.2 million, respectively, and is reflected in other current assets and other assets within our consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the year ended December 31, 2024, we recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate. We did not write off any accrued interest receivable during the years ended December 31, 2025 and 2023.
Inventory
Inventory

Our inventory, which is comprised of raw materials, work-in-process and finished goods, includes materials used to produce our wireless communications network enabled radios, video cameras, video recorders, smart thermostats, active shooter detection sensors, home automation system parts and peripherals, is stated at the lower of cost or net realizable value, and is charged to cost of sales primarily on a first in, first out, or FIFO, basis when the inventory is shipped from our manufacturer and received by our service provider partners. We periodically evaluate our inventory quantities for obsolescence based on criteria such as customer demand and changing technology and record an obsolescence write-off when necessary.
Equity Method Investments
Equity Method Investments

We account for equity investments where we can exercise significant influence over, but not control, an investee using the equity method of accounting. Equity method investments are initially recorded at cost in investments in unconsolidated entities in the consolidated balance sheets. Under the equity method of accounting, investments are adjusted to recognize our proportionate share of net income or losses of the investees and are recorded in income from equity method investments, net in our consolidated statements of operations. The equity method investments are also adjusted by contributions to and distributions from the investees as well as any impairments resulting from other-than-temporary declines in fair value that is less than its carrying value. Depending on the timing of the availability of the financial statements of the investees, we may apply a three-month lag period based on when financial information is received. When applying a lag period, we adjust for any known significant changes from the lag period to our reporting date.

In cases where our equity method investments provide for a disproportionate allocation of the profits and losses of the investees, our share of income or losses from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value, or HLBV, method. Under the HLBV method, at the end of each reporting period, a calculation is prepared to determine the amount that we would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions as well as the amortization of basis differences, is the amount we recognize for our share of the income or losses from the equity investments for the period.

We have certain investments in unconsolidated entities accounted for under the equity method of accounting in which our carrying value exceeds our proportionate share of net assets of the unconsolidated entity. We record our proportionate share of amortization expense related to basis differences in income from equity method investments, net in our consolidated statements of operations.
Leases
Leases

We determine if an arrangement contains a lease at the inception of the arrangement. As part of the lease determination process, we assess several factors, including, but not limited to, whether we have the right to control and direct the use of the asset and whether the other party has a substantive substitution right. If we enter into leases that contain multiple components, we identify separate lease components based on whether or not the right to use the underlying assets is distinct and either highly dependent or highly interrelated with other rights in the contract. We also evaluate whether there are any non-lease components in the arrangement. For certain classes of underlying assets, such as data centers, we have elected not to separate non-lease components from lease components. For all other classes of underlying assets, if separate lease and non-lease components are identified, we allocate the consideration in the contract to the lease and non-lease components using the relative stand-alone selling price method at the lease inception.

Some of our leases include options to renew at our sole discretion. We also have several leases that provide us an option to terminate the lease prior to the end of the lease term. These renewal and termination options are included in the lease term at the commencement date when we are reasonably certain the options will be exercised. When assessing the likelihood of electing these options, we consider the length of the renewal period, market conditions, our expansion plans, the existence of a termination penalty, as well as other factors. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments.

Right-of-use, or ROU, assets represent our right to use an underlying asset for the term of the lease and lease liabilities represent our obligation to make lease payments throughout the term of the lease. ROU assets and lease liabilities are recognized as of the commencement date of the lease based on the present value of contractual lease payments due over the term of the lease. We use our incremental borrowing rate to determine the present value of the lease payments, as our leases do not state the rate implicit in the lease. Our incremental borrowing rate is determined on a collateralized basis at the commencement date of the lease.

ROU assets and lease liabilities resulting from operating leases are recorded on our consolidated balance sheets. Our finance leases and subleases were not material to the consolidated financial statements as of December 31, 2025. We did not have any finance leases or subleases as of December 31, 2024.
Lease expense is recognized on a straight-line basis over the term of the lease. Office and equipment lease expense is recorded in general and administrative expense and data center lease expense recorded in cost of SaaS and license revenue as well as research and development expense. Some of our leases include tenant improvement allowances, which are recorded when we are reasonably certain to utilize the allowance and are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Leases with an initial lease term of twelve months or less are considered short-term leases. Short-term leases are not recorded on our consolidated balance sheets. Expenses associated with short-term leases are recognized on a straight-line basis over the term of the lease and are recorded in general and administrative expense.
Convertible Senior Notes
Convertible Senior Notes
On January 20, 2021, we issued $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026, in a private placement to qualified institutional buyers, or the 2026 Notes. On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes. We account for the 2026 Notes and the 2029 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes and 2029 Notes.
Capped Call Transactions
Capped Call Transactions

On May 31, 2024, we issued the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity
classification.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.
Comprehensive Income
Comprehensive Income

Comprehensive income consists of net income and other comprehensive income / (loss). Other comprehensive income / (loss) refers to gains and losses that are recorded as an element of stockholders' equity and excluded from net income. Our other comprehensive income / (loss) consists of foreign currency translation adjustments.
Foreign Currency
Foreign Currency

For foreign operations where substantially all monetary transactions are in the local currency, we use the local currency as the functional currency. For these foreign operations, assets and liabilities are translated at period-end exchange rates and revenue and expense items are translated at average exchange rates prevailing during the periods being reported. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment within accumulated other comprehensive income, a separate component of stockholders’ equity. Gains or losses from foreign currency remeasurements that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our results of operations.
Redeemable Noncontrolling Interests
Redeemable Noncontrolling Interests
Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interests relate to our 89% equity ownership interest in PC Open Incorporated, a Washington corporation, doing business as OpenEye, our 99% equity ownership interest in Noonlight, Inc., or Noonlight, a Delaware corporation (see Note 7) and our 81% ownership interest in CHeKT, Inc., or CHeKT. The OpenEye, Noonlight and CHeKT stockholder agreements contain a put option that gives the minority stockholders the right to sell their shares to us based on the fair value of the shares and also contain a call option that gives us the right to purchase the remaining shares from the minority stockholders based on the fair value of the shares. The next put and call options related to OpenEye can be exercised beginning in the first quarter of 2028 and the fourth quarter of 2028, respectively. The put and call options related to Noonlight can each be exercised beginning in the first quarter of 2026. The put and call options related to CHeKT can each be exercised beginning in the first quarter of 2028. These redeemable noncontrolling interests are considered temporary equity and we report them between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in the consolidated statements of operations and the accretion of the redemption values is recorded as an adjustment to additional paid-in capital. We account for purchases of redeemable noncontrolling interest as a component of stockholders' equity when control is maintained. We recognize the difference between the fair value of the consideration paid for the acquired redeemable noncontrolling interest and the carrying value of the acquired redeemable noncontrolling interest as an adjustment to additional paid-in capital.
Internal-Use Software
Internal-Use Software

We capitalize the costs directly related to the development of internal-use software for our platforms during the application development stage of the projects. Such costs primarily include payroll and payroll-related costs for engineers and product development employees as well as third-party consultants directly associated with the development project. Our internal-use software is reported at cost less accumulated amortization. Amortization begins once the project is ready for its intended use, which is usually when the code goes into production in weekly software builds on our platforms. We amortize the asset on a straight-line basis over the estimated useful life, which is typically a three to five-year period. We update our software for our SaaS multi-tenant platforms on a weekly basis utilizing continuous agile development methods, which primarily consists of bug-fixes and user interface changes. We evaluate whether a project should be capitalized if it adds significant functionality to our platforms. Maintenance activities or minor upgrades are expensed in the period performed.
External Software and Research and Development
External Software

Costs incurred in researching and developing a computer software product that will be marketed and sold are charged to expense when incurred until technological feasibility is established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. After technological feasibility is established, certain payroll and payroll-related costs are capitalized for engineers and product development employees directly associated with the development project. Cost capitalization ceases when the product is available for general release. Our non-hosted software is typically developed in an agile environment with frequent revisions to product release features and functions. Agile development
results in a short duration between completion of the detailed program design and beta release.
Research and Development

Our research and development costs consist primarily of personnel and related expenses for our employees working on our product development and software and device engineering teams, including salaries, bonuses, stock-based compensation, benefits and other personnel costs. Our research and development of new products and services is a multidisciplinary effort across our product management, program management, software engineering, device engineering, quality engineering, configuration management and network operations teams. Also included are non-personnel costs, such as consulting and professional fees paid to third-party development resources. We invest substantial resources in research and development to enhance our platforms and applications, support our technology infrastructure, develop new capabilities and conduct quality assurance testing.
Revenue Recognition
Revenue Recognition

We derive our revenue from three primary sources: the sale of cloud-based SaaS services on our integrated Alarm.com platform, the sale of licenses and services on our non-hosted software platform, or Software platform, and the sale of hardware products. We sell our platform and hardware solutions to service provider partners that resell our solutions and hardware to residential and commercial property owners, who are the service provider partners’ customers. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We also sell our hardware to distributors who resell the hardware to service provider partners. We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware. These service provider contracts typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions.

Our hardware sales include connected devices that enable our services, such as video cameras, video recorders, gunshot detection sensors, gateway modules and smart thermostats. Our service provider partners may purchase our hardware in anticipation of installing the hardware in a residential or commercial property when they create a new subscriber account, or for use in existing subscriber properties. The purchase of hardware occurs in a transaction that is separate and typically in advance of the purchase of our platform services. The performance obligation is primarily satisfied when the hardware is received by our service provider partner or distributor. Service provider partners transact with us to purchase our platform solutions and resell our solutions to a new subscriber, or to upgrade or downgrade the solutions of an existing subscriber, at which time the subscriber’s access to our platform solutions is enabled and the delivery of the services commences. Our performance obligation related to providing our platform solutions is satisfied on a daily basis as the subscriber uses the platform services. The purchase of platform solutions and the purchase of hardware are separate transactions as revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers.

Contracts with our service provider partners typically have an initial term of one year. Further, SaaS and license revenue associated with our contracts is recognized at an amount that corresponds directly with the value of the performance completed to date. Additionally, the consideration received from hardware sales corresponds directly with the stand-alone selling price of the hardware. As a result, we have elected to use the practical expedient related to the amount of transaction price allocated to the unsatisfied performance obligations and therefore, we have not disclosed the total remaining revenue expected to be recognized on all contracts or the expected period over which the remaining revenue would be recognized.

To determine the transaction price, we analyze all of the performance obligations included in the contract. We consider the terms of the contract and our customary business practices, which typically do not include financing components or non-cash consideration. We have variable consideration primarily in the form of rebate incentives. The significant inputs related to our estimates of variable consideration include the volume and amount of products and services sold historically and expected to be sold in the future, the availability and performance of our services and the historical and expected number of returns. Depending on the type of variable consideration and its predictability, we may apply an "expected value" approach or a "most likely amount" approach. We estimate the variable consideration at the onset of a contract and include the variable consideration within the transaction price if it is probable that a significant reversal of the variable consideration would not occur in the future. When determining whether the amount of variable consideration included in the transaction price should be constrained, we look at the history of hardware purchased and subscribers added by our service provider partners to estimate the likelihood of those service provider partners obtaining the rebates. At times, our contracts include consideration payable to a customer in the form of fixed discounts or rebates. We record the consideration payable to a customer as a reduction to the transaction price resulting in a reduction to revenue over the service period.

If we enter into contracts that contain multiple promised services, we evaluate which of the promised services represent separate performance obligations based on whether or not the promised services are distinct and whether or not the services are separable from other promises in the contract. If these criteria are met, then we allocate the transaction price to the performance obligations using the relative stand-alone selling price method at contract inception.

In determining the relative estimated selling prices, we consider market conditions, entity-specific factors and information about the customer or class of customer. Any discount within the contract is allocated proportionately to all of the separate performance obligations in the contract unless the terms of discount relate specifically to the entity’s efforts to satisfy some but not all of the performance obligations.
For our standard service provider agreements, we have used a portfolio approach for purposes of revenue recognition, as each agreement has similar characteristics and we do not expect the effects of applying this approach would have a material impact on our financial statements as compared to assessing each agreement individually.

SaaS and License Revenue

We generate the majority of our SaaS and license revenue primarily from monthly fees charged to our service provider partners on a per subscriber basis for access to our cloud-based intelligently connected property platform and related solutions. Our fees per subscriber vary based upon the service plan and features utilized.

Under the terms of our contractual arrangements with our service provider partners, we bill a monthly fee to our service provider partners in advance of the month of service, with the exception of the initial partial month of service, which is paid in arrears. Due to the limited period of time between receipt of payment and delivery of service, we have not accounted for these advance payments as significant financing components. We typically transfer the promised SaaS services to our customers over time, which is evidenced by the fact that the customers receive and consume the benefits provided by our performance of the services as such services are rendered. As a result, we recognize revenue from SaaS services on a monthly basis as we satisfy our performance obligations over the period of service. We have demonstrated that we can sell our SaaS offering on a stand-alone basis, as it can be sold separately from hardware and activation services. Our service provider partners typically incur and pay the same monthly fee per subscriber account for the entire period a subscriber account is active.

We offer multiple service level packages for our platform solutions including a range of solutions and a range of a la carte add-ons for additional features. The fee paid by our service provider partners each month for the delivery of our solutions is based on the combination of packages and add-ons enabled for each subscriber. We utilize tiered pricing plans where our service provider partners may receive prospective pricing discounts driven by volume.

We also generate SaaS and license revenue from the fees paid to us when we license our intellectual property to third parties for use of our patents. We bill a monthly fee to third parties based on the number of customers that were active during the prior month. We apply the usage-based royalty exception to recognize license revenue because the sole or predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the license period. In addition, in certain markets, our EnergyHub subsidiary sells its demand response service for an annual service fee, with pricing based on the number of subscribers or amount of aggregate electricity demand made available for a utility’s or market’s control.

Software License Revenue

Our SaaS and license revenue also includes our software license revenue from monthly fees charged to service providers on a per subscriber basis for access to our Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Our agreements for the Software platform solution typically include software and services, such as post-contract customer support, or PCS. Software sales that include multiple elements are typically allocated to the various elements using the relative stand-alone selling price method. We apply the usage-based royalty exception to recognize license revenue associated with software hosted by our customers because the predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period of use. Under the terms of our contractual arrangements with our service provider partners, we are entitled to payment of a monthly fee that is billed per subscriber for the month of service. Our software license revenue during the years ended December 31, 2025, 2024 and 2023 was $17.7 million, $20.3 million and $23.2 million, respectively.

Hardware and Other Revenue

We generate hardware and other revenue primarily from the sale of video cameras, video recorders, smart thermostats and cellular radio modules that provide access to our cloud-based platforms and, to a lesser extent, the sale of other devices, including image sensors, gunshot detection sensors and peripherals. We primarily transfer hardware to our customers upon delivery to the customer, which corresponds with the time at which the customer obtains control of the hardware. As a result, we recognize hardware and other revenue as we satisfy our performance obligations, which primarily occurs when the hardware is received by our service provider partner or distributor, net of a reserve for estimated returns. There are a few contracts in which we provide shipping and handling services to the customer after control of the hardware transfers to the customer. In these instances, we have elected to account for shipping and handling costs as activities performed to fulfill the promise to transfer hardware to the customer and not as a separate promised service.

Amounts due from the sale of hardware are payable in accordance with the terms of our agreements with our service provider partners or distributors, and are not contingent on resale to end-users, or to service provider partners in the case of sales of hardware to distributors. Payment for our hardware is typically due within 30 days from shipment. Our distributors sell directly to our service provider partners under terms between the two parties.
When determining the amount of consideration we expect to be entitled to for the sale of our hardware, we estimate the variable consideration associated with customer returns. We record a reserve against revenue for hardware returns based on historical returns. For each of the years ended December 31, 2025, 2024 and 2023, our reserve against revenue for hardware returns was 1% of hardware and other revenue. We evaluate our hardware reserve on a quarterly basis or if there is an indication of significant changes in return experience. Historically, our returns of hardware have not significantly differed from our estimated reserve. Additionally, we provide warranties related to the intended functionality of the products and services provided and those warranties typically allow for the return of hardware up to one year past the date of sale. We determined that these warranties are not separate performance obligations as they cannot be purchased separately and do not provide a service in addition to an assurance the hardware will function as expected.

Our hardware and other revenue also includes our revenue from the sale of perpetual licenses that provide our customers in the commercial market the right to use our video surveillance software for an indefinite period of time in exchange for a one-time license fee. Our hardware and other revenue also includes our revenue from the sale of licenses that provide our customers the right to use our gunshot detection solution in exchange for license fees. Our perpetual licenses and licenses to our gunshot detection solution provide a right to use intellectual property that is functional in nature and has significant stand-alone functionality. Accordingly, for licenses of functional intellectual property, revenue is recognized at the point-in-time when control has been transferred to the customer, which occurs once the software has been made available to the customer.

Hardware and other revenue may also include activation fees charged to some of our service provider partners for activation of a new subscriber account on our platforms, as well as fees paid by service provider partners for our marketing services. Our service provider partners use services on our platforms, such as support tools and applications, to assist in the installation of our solutions in subscriber properties. This installation marks the beginning of the service period on our platforms and, on occasion, we earn activation revenue for fees charged for this service. The activation fee is non-refundable, separately negotiated and specified in our contractual arrangements with our service provider partners and is charged to the service provider partner for each subscriber activated on our platforms. The decision whether to charge an activation fee is based in part on the expected number of subscribers to be added by our service provider partners and as a result, many of our largest service provider partners do not pay an activation fee. Activation fees are not offered on a stand-alone basis separate from our SaaS offering and are billed and received at the beginning of the arrangement. We record activation fees initially as deferred revenue and we recognize these fees ratably over the expected term of the subscribers’ account which we estimate is 10 years based on our annual attrition rate. The portion of these activation fees included in current and long-term deferred revenue as of our balance sheet date represents the amounts that will be recognized ratably as revenue over the following twelve months, or longer as appropriate, until the 10-year expected term is complete. The balance of deferred revenue for activation fees was $4.0 million and $4.3 million as of December 31, 2025 and 2024, respectively, which combines current and long-term balances.

Cost of Revenue

Our cost of SaaS and license revenue primarily includes the amounts paid to wireless network providers and, to a lesser extent, the costs of running our network operations centers which are expensed as incurred, as well as patent and royalty costs in connection with technology licensed from third-party providers and amounts paid to distributed energy resource providers. Our cost of SaaS and license revenue also includes our cost of software license revenue, which primarily includes the payroll and payroll-related costs of the department dedicated to providing service exclusively to those service providers that host the Software platform. Our cost of software license revenue during the years ended December 31, 2025, 2024 and 2023 was $0.4 million, $0.6 million and $0.6 million, respectively. Our cost of hardware and other revenue primarily includes cost of raw materials, tooling, freight shipments and amounts paid to our third-party manufacturer for production and fulfillment of our cellular radio modules and image sensors, and procurement costs for our video cameras, video recorders, smart thermostats and gunshot detection sensors, which we purchase from an original equipment manufacturer, and other devices. Cost of hardware and other revenue also includes material costs and labor cost related to our employees who manufacture hardware for our suite of IoT solutions. Additionally, our cost of hardware and other revenue includes royalty costs in connection with technology licensed from third-party providers.

We record the cost of SaaS and license revenue as expenses are incurred, which corresponds to the delivery period of our services to our subscribers. We record the cost of hardware and other revenue primarily when the hardware and other services are delivered to the service provider partner, which occurs when control of the hardware and other services transfers to the service provider partner. Our cost of revenue excludes amortization and depreciation shown in operating expenses.

Contract Asset and Contract Liability Balances

At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each distinct promise to transfer a good or service, or bundle of goods or services. To identify the performance obligations, we consider all of the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. We record a contract asset when we satisfy a performance obligation by transferring a promised good or service. Contract assets can be conditional or unconditional depending on whether another performance
obligation must be satisfied before payment can be received. We receive payments from our service provider partners based on the billing schedule established in our contracts. All of the accounts receivable presented in the consolidated balance sheets represent unconditional rights to consideration. We do not have any material assets from contracts containing conditional rights and we do not have any material assets from satisfied performance obligations that have not been invoiced.

We recognize an asset related to the costs incurred to obtain or fulfill a contract only if we expect to recover those costs and we would not have incurred those costs if the contract had not been obtained. We recognize an asset from the costs incurred to fulfill a contract if the costs (i) are specifically identifiable to a contract, (ii) enhance resources that will be used in satisfying performance obligations in future and (iii) are expected to be recovered. Our assets related to costs incurred to obtain a contract consist of capitalized commission costs, upfront payments made to a customer and contracts with an outstanding performance obligation. Based on the policy above, we capitalize a portion of our commission costs as an incremental cost of obtaining a contract. When calculating the incremental cost of obtaining a contract, we exclude any commission costs related to metrics that could be satisfied without obtaining a contract, including training-related metrics. We amortize our commission costs to sales and marketing expense on our consolidated statements of operations over a period of three years, which is consistent with the period over which the products and services related to the commission are transferred to the customer. The three-year period was determined based on our review of historical enhancements and upgrades to our products and services. We applied the portfolio approach to account for the amortization of contract costs for those contracts that have similar characteristics. Upfront payments made to a customer are capitalized and amortized over the expected period of benefit and are recorded as a reduction to revenue.

Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. All of the deferred revenue presented in the consolidated balance sheets represents contract liabilities resulting from advance cash receipts from customers or amounts billed in advance to customers from the sale of services. Changes in deferred revenue are due to our performance under the contract as well as to cash received from new contracts for which services have not been provided.
Fair Value Measurements
Fair Value Measurements

The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date;

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for similar assets and liabilities, either directly or indirectly; quoted prices in markets that are not active; and

Level 3 - Unobservable inputs supported by little or no market activity.

The carrying amount of financial assets, including cash and cash equivalents and accounts receivable, as well as accounts payable approximates fair value because of the short maturity and liquidity of those instruments.

Assets and Liabilities Measured at Fair Value on a Recurring Basis - In 2025 and 2024, we recorded assets for our money market accounts and equity securities with readily determinable fair values on a recurring basis. In 2025 and 2024, we recorded liabilities for a contingent consideration liability related to acquisitions at fair value on a recurring basis.

Assets Measured at Fair Value on a Nonrecurring Basis - We measure certain assets, including property and equipment, goodwill and intangible and long-lived assets at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. Additionally, equity investments without readily determinable fair
values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available.
Concentration of Credit Risk
Concentration of Credit Risk

The financial instruments that potentially subject us to concentrations of credit risk consists principally of cash and cash equivalents and accounts receivables. All of our cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. Our cash and cash equivalent accounts may exceed federally insured limits at times. We mitigate the risk of loss for our cash and cash equivalents by depositing funds with a number of reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. We have not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, we evaluate the credit worthiness of our service provider partners and maintain an allowance for credit losses. The majority of our accounts receivable balance is due from our service provider partners in North America. We assess the concentrations of credit risk with respect to accounts receivables based on one industry and one geographic region and believe our reserve for uncollectible accounts is appropriate based on our history and this concentration.
Stock-Based Compensation
Stock-Based Compensation

We compensate our executive officers, board of directors and employees with stock-based compensation plans under our 2025 Equity Incentive Plan, or 2025 Plan. We record stock-based compensation expense related to time-based restricted stock units based upon the award’s grant date fair value and use an accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. We record stock-based compensation expense related to performance-based restricted stock units based on management’s determination of the probable outcome of the performance conditions and we record a cumulative adjustment in periods in which there is a change in the estimated number of shares expected to vest. Our equity awards generally vest over five years and are settled in shares of our common stock. During 2025, 2024 and 2023, we recognized compensation expense of $33.2 million, $41.2 million and $47.3 million, respectively. During 2025 and 2023 we recognized a tax shortfall from stock-based awards of $1.0 million and $0.5 million, respectively. During 2024, we recognized an associated tax windfall benefit from stock-based awards of $1.8 million. We account for stock-based compensation arrangements with non-employees based upon the award’s grant date fair value. We estimate the fair value of each option granted on the date of the grant using the Black-Scholes option-pricing model, which contains uncertainties and requires us to estimate the risk-free interest rate, expected term, expected stock price volatility and dividend yield. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted.

Our Employee Stock Purchase Plan, or 2015 ESPP, allows eligible employees to purchase shares of our common stock at 90% of the fair market value of the closing price on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year is limited to the lesser of 10% of the participant's base compensation for that year or the number of shares with a fair market value of $15,000. The 2015 ESPP is considered compensatory for purposes of share-based compensation expense. Compensation expense is recognized for the amount of the discount, net of actual forfeitures, over the six-month purchase period.
We account for stock-based compensation options based on the fair value of the award as of the grant date. We recognize stock-based compensation expense using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche.

We value our stock options using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected term, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of our stock options. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted. The expected volatility for options granted is based on historical volatilities of our stock over the estimated expected term of the stock options.
We account for RSUs based on the fair value of the award as of the grant date. We recognize stock-based compensation expense for time-based RSUs using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the grant date to the vesting date for that tranche.
401(k) Defined Contribution Plan
401(k) Defined Contribution Plan
We adopted the Alarm.com Holdings 401(k) Plan, or the Plan, on April 30, 2009. All of our employees are eligible to participate in the Plan. For the years ended December 31, 2025, 2024 and 2023, our discretionary match was 100% of employee contributions up to 10% of salary and up to a $5,000 maximum match.
Business Combinations
Business Combinations

We are required to allocate the purchase price of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. The net assets and results of operations of an acquired entity are included in our consolidated financial statements from the acquisition date. Acquisition-related costs are expensed as incurred. Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired net of liabilities assumed. This valuation requires management to apply significant judgment in estimating the fair value of long-lived and intangible assets acquired, which involves the use of significant estimates and assumptions. 

Significant estimates and assumptions in valuing certain acquired customer relationship intangible assets include estimates about future expected cash flows, attrition rates and discount rates. Significant estimates and assumptions in valuing acquired developed technology intangible assets include estimates about future expected cash flows, obsolescence factors, royalty rates
and discount rates. Significant estimates and assumptions in valuing acquired trade name intangible assets include estimates about future expected cash flows, royalty rates and discount rates.

During the measurement period, we may record adjustments to the assets acquired and liabilities assumed. Any adjustments to provisional amounts that are identified during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Some acquisitions may include contingent consideration, which is an obligation to make future payments to the seller contingent upon the achievement of future operational or financial targets. The fair value of the contingent consideration is estimated on a quarterly basis and changes in the fair value of the contingent consideration resulting from information that existed subsequent to the acquisition date are recorded in the consolidated statements of operations.
Goodwill, Intangible Assets and Long-lived Assets
Goodwill, Intangible Assets and Long-lived Assets

Goodwill

Goodwill represents the excess of (1) the aggregate of the fair value of consideration transferred in a business combination, over (2) the fair value of assets acquired, net of liabilities assumed. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments. Goodwill is not amortized, but is subject to annual impairment tests. We perform our annual impairment review of goodwill on October 1 and when a triggering event occurs between annual impairment tests. We test our goodwill at the reporting unit level. We perform either a qualitative analysis or a quantitative analysis every year depending on the changes to our goodwill balance as well as changes in our business and the economy. Qualitative factors we consider include, but are not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances and market capitalization. The amount of goodwill impairment is calculated as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

For our 2025 annual impairment review, we performed a qualitative assessment for our Alarm.com and Other reporting units. Based on the results of our qualitative assessment, we determined that it was not more likely than not that the fair value of our reporting units was less than their carrying amount, including goodwill. Therefore, we concluded that there was no goodwill impairment as of October 1, 2025. Our assessment was performed as of October 1, 2025, and we have determined there has been no triggering events that resulted in goodwill impairment from our assessment date through December 31, 2025.

Intangible Assets and Long-lived Assets

Intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives. We evaluate the recoverability of our intangible assets with definite lives and long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of intangible assets with definite lives and long-lived assets are measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.
Advertising Costs
Advertising Costs
We expense advertising costs as incurred.
Accounting for Income Taxes
Accounting for Income Taxes

We account for income taxes under the asset and liability method as required by Accounting Standards Codification, or ASC 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that are included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations.

We are subject to income taxes in the United States and foreign jurisdictions based upon our business operations in those jurisdictions. Significant judgment is required in evaluating uncertain tax positions. We record uncertain tax positions in accordance with ASC 740-10 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) with respect to those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties as a component of our income tax provision.
Treasury Stock
Treasury Stock

We account for treasury stock under the cost method and present treasury stock, including any applicable commissions and fees, as a component of stockholders’ equity in the consolidated balance sheets and statements of equity. We are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022. When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the consolidated balance sheets. Treasury stock held by us may be retired or reissued in the future.
Earnings per Share
Earnings per Share

Our basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Our diluted net income per share attributable to common stockholders is calculated by giving effect to all potentially dilutive common stock when determining the weighted-average number of common shares outstanding. For purposes of the diluted net income per share calculation, restricted stock units, options to purchase common stock and unvested shares issued upon the early exercise of options that are subject to repurchase are considered to be potential common stock.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. Additionally, we included interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share.

Our redeemable noncontrolling interests are related to our 89% equity ownership interest in OpenEye, our 99% equity ownership interest in Noonlight and our 81% equity ownership interest in CHeKT. When calculating net income attributable to the common stockholders, net loss attributable to our redeemable noncontrolling interests should be excluded from net income. As a result, net income attributable to the common stockholders is equal to the net income less the net loss attributable to redeemable noncontrolling interests as of the end of each period.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Adopted

On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. This amendment is required to be applied retrospectively to all prior periods presented. We adopted ASU 2023-07 during the fiscal year ended December 31, 2024, which increased the amount of disclosures within Note 20 related to segment expenses.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well as additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. We adopted ASU 2023-09 during the fiscal year ended December 31, 2025, which increased the disclosures of certain tax amounts within Note 19
related to income taxes.

Not Yet Adopted

On November 5, 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)," which requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations, including purchases of inventory, employee compensation, depreciation, amortization and depletion. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses and, on an annual basis, an entity's definition of selling expenses. The amendment is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. This amendment should be applied either on a prospective basis or a retrospective basis to any or all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

On September 18, 2025, the FASB issued ASU 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)," to align the accounting for software costs with the evolution of software development, including the shift from using a prescriptive and sequential development method to using an incremental and iterative development method. This amendment clarifies that capitalization of internal-use software costs begins when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Additionally, this amendment supersedes the website development costs guidance and it clarifies certain disclosure requirements for internal-use software costs. The amendment is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. This amendment should be applied either on a (i) prospective basis, (ii) retrospective basis to any or all prior periods presented, or (iii) modified transition basis that is based on the status of the project and whether software costs were capitalized before the date of adoption. We are currently assessing the impact this pronouncement will have on our consolidated financial statements and related disclosures.
Property and Equipment, Net Property and Equipment, Net
Furniture, fixtures and office equipment, computer software and hardware, internal-use software, construction in progress, leasehold improvements and real property and improvements are recorded at cost and presented net of depreciation on the consolidated balance sheets. We record land at historical cost. Furniture, fixtures and office equipment and computer software and hardware are depreciated on a straight-line basis over lives generally ranging from three to five years. Internal-use software included in fixed assets is amortized on a straight-line basis over a three-year period. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Real property is amortized on a straight-line basis over lives ranging from 15 to 39 years and the improvements related to real property are amortized on a straight-line basis over the shorter of the life of the underlying real property or the asset lives.
v3.25.4
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Assets and Contract Liabilities
The changes in our contract assets are as follows (in thousands):
Year Ended December 31,
202520242023
Beginning of period balance$12,088 $9,099 $13,975 
Additions to contract assets
15,524 10,292 7,837 
Reimbursement of previously capitalized upfront payments to customers
— — (6,774)
Amortization or satisfaction of outstanding performance obligation of capitalized contract assets
(9,665)(7,303)(5,939)
End of period balance$17,947 $12,088 $9,099 
The changes in our contract liabilities are as follows (in thousands):
Year Ended December 31,
202520242023
Beginning of period balance$26,559 $22,885 $18,332 
Revenue deferred or acquired in period
33,903 26,883 22,861 
Revenue recognized from amounts included in contract liabilities(30,578)(23,209)(18,308)
End of period balance$29,884 $26,559 $22,885 
v3.25.4
Accounts Receivable, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Components of Accounts Receivable
The components of accounts receivable, net are as follows (in thousands):
December 31,
20252024
Accounts receivable$149,163 $132,400 
Allowance for credit losses(5,171)(3,870)
Allowance for product returns(2,140)(2,448)
Accounts receivable, net$141,852 $126,082 
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable
The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,777)$(93)$(3,723)$(141)
(Provision for) / recovery of expected credit losses(1,952)(203)(956)6 
Write-offs798 56 902 42 
End of period balance$(4,931)$(240)$(3,777)$(93)
The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024
Beginning of period balance$(1)$(5)
Provision for expected credit losses
(748)(3,996)
Write-offs— 4,000 
End of period balance$(749)$(1)
v3.25.4
Inventory (Tables)
 12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
The components of inventory are as follows (in thousands):
December 31,
20252024
Raw materials$18,238 $23,881 
Work-in-process372 595 
Finished goods75,819 62,959 
Total inventory$94,429 $87,435 
v3.25.4
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Summary of Property and Equipment
The components of property and equipment, net are as follows (in thousands):
December 31,
20252024
Furniture, fixtures and office equipment$11,320 $10,325 
Computer software and hardware43,644 41,197 
Internal-use software8,949 8,949 
Construction in progress13,372 14,809 
Leasehold improvements38,004 34,397 
Real property and improvements11,441 11,322 
Land22,711 22,684 
Total property and equipment149,441 143,683 
Accumulated depreciation(84,642)(80,478)
Property and equipment, net$64,799 $63,205 
v3.25.4
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Consideration and Fair Value of Assets Acquired
The table below sets forth the purchase consideration and the preliminary allocation used to estimate the fair value of the tangible and intangible net assets acquired (in thousands):
November 21, 2025
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment$78,811 
Total consideration$78,811 
Estimated Tangible and Intangible Net Assets:
Accounts receivable $4,887 
Other current assets
16 
Deferred tax assets638 
Customer relationships28,947 
Developed technology4,279 
Accounts payable(356)
Accrued expenses and other current liabilities(1,588)
Deferred revenue(3,069)
Goodwill45,057 
Total estimated tangible and intangible net assets$78,811 
The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands):
February 10, 2025
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment$23,382 
Holdback consideration3,694 
Total consideration$27,076 
Tangible and Intangible Net Assets:
Cash$195 
Accounts receivable 308 
Inventory 645 
Other current assets
4 
Customer relationships486 
Developed technology9,412 
Trade names814 
Accounts payable(150)
Accrued expenses and other current liabilities(212)
Deferred tax liability
(1,462)
Other liabilities
(100)
Redeemable noncontrolling interest(6,352)
Goodwill23,488 
Total tangible and intangible net assets$27,076 
v3.25.4
Goodwill and Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in goodwill by reportable segment are outlined below (in thousands):    
Alarm.comOtherTotal
Balance as of January 1, 2024$154,498 $— $154,498 
Foreign currency translation adjustment
(287)— (287)
Balance as of December 31, 2024154,211 — 154,211 
Goodwill acquired23,579 48,156 71,735 
Measurement period adjustment(91)(1,767)(1,858)
Foreign currency translation adjustment 899 — 899 
Balance as of December 31, 2025$178,598 $46,389 $224,987 
Schedule of Intangible Assets
The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):
Customer
Relationships		Developed
Technology		Trade NameCapitalized Software Development Costs
Other
Total
Balance as of January 1, 2024$39,294 $37,174 $1,217 $879 $— $78,564 
Intangible assets acquired— 1,585 — — 46 1,631 
Capitalized software development costs
— — — 1,798 — 1,798 
Amortization(9,669)(8,216)(717)(232)— (18,834)
Balance as of December 31, 202429,625 30,543 500 2,445 46 63,159 
Intangible assets acquired34,120 18,398 1,058 — — 53,576 
Capitalized software development costs— — — 1,354 — 1,354 
Amortization(8,721)(9,320)(256)(440)— (18,737)
Balance as of December 31, 2025$55,024 $39,621 $1,302 $3,359 $46 $99,352 
The following tables reflect the weighted-average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
 December 31, 2025
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$162,400 $(107,376)$55,024 10.8
Developed technology89,714 (50,093)39,621 5.2
Trade name5,532 (4,230)1,302 5.0
Capitalized software development costs4,034 (675)3,359 3.8
Other
46 — 46 5.0
Total intangible assets$261,726 $(162,374)$99,352 8.3
    
 December 31, 2024
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(98,655)$29,625 5.3
Developed technology71,316 (40,773)30,543 4.0
Trade name4,474 (3,974)500 2.9
Capitalized software development costs2,680 (235)2,445 3.7
Other
46 — 46 5.0
Total intangible assets$206,796 $(143,637)$63,159 4.6
Schedule of Future Estimated Amortization Expense
The following table reflects the future estimated amortization expense for intangible assets (in thousands):
Year Ended December 31,Amortization
2026$23,448 
202720,325 
202814,550 
20297,683 
20306,498 
2031 and thereafter26,848 
Total future amortization expense$99,352 
v3.25.4
Investments in Unconsolidated Entities (Tables)
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Summary of Investments in Unconsolidated Entities
Our investments in unconsolidated entities are as follows (in thousands):
December 31, 2025December 31, 2024
Ownership Percentage
Carrying Value
Excess Carrying Value of Investment Over Proportionate Share of Net Assets
Carrying Value
Excess Carrying Value of Investment Over Proportionate Share of Net Assets
Safe Haven and All Access
32.5 %$141,205 $143,134 $— $— 
SafeStreets
24.7 %29,436 31,144 — — 
Pronet20.3 %30,142 — — — 
Other unconsolidated entities
26,148 707 17,170 733 
Total
$226,931 $174,985 $17,170 $733 

Equity method income from our investments in unconsolidated entities are as follows (in thousands):
Year Ended December 31,
20252024
Income from equity method investments, net$2,642 $133 

Other related party transactions and balances outstanding with our equity method investees for activity subsequent to our
investments are as follows (in thousands):
Year Ended December 31,
20252024
Revenue from equity method investees
$17,411 $39 
Interest income from equity method investees
1,096 2 
Distributions received from equity method investees
7,763 — 

December 31, 2025December 31, 2024
Outstanding principal from loans to equity method investees
$21,947 $145 
Interest receivable from equity method investees
381 — 
Accounts receivable from equity method investees
1,774 82 
Total amounts receivable from equity method investees
$24,102 $227 
Summarized financial information for all of our equity method investees in the aggregate for the periods during which we held an equity method investment are as follows (in thousands):
Statement of OperationsYear Ended December 31,
20252024
Revenue
$730,488 $1,565 
Gross profit
300,352 688 
Operating income
106,050 (176)
Net income
64,131 (332)
Net income attributable to the equity method investees
64,131 (332)

Balance Sheet
December 31, 2025December 31, 2024
Current assets
$107,854 $470 
Noncurrent assets
548,486 1 
Current liabilities
150,650 267 
Noncurrent liabilities
209,872 239 
v3.25.4
Other Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable
The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,777)$(93)$(3,723)$(141)
(Provision for) / recovery of expected credit losses(1,952)(203)(956)6 
Write-offs798 56 902 42 
End of period balance$(4,931)$(240)$(3,777)$(93)
The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024
Beginning of period balance$(1)$(5)
Provision for expected credit losses
(748)(3,996)
Write-offs— 4,000 
End of period balance$(749)$(1)
Schedule of Financing Receivable Credit Quality Indicators The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):
December 31, 2025
Loan Receivables:20252024202320222021PriorTotal
Current$22,600 $500 $447 $1,500 $— $— $25,047 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — 943 943 
Total$22,600 $500 $447 $1,500 $— $943 $25,990 

December 31, 2024
Loan Receivables:20242023202220212020PriorTotal
Current$500 $146 $1,500 $— $993 $— $3,139 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$500 $146 $1,500 $— $993 $— $3,139 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair Value Measurements on a Recurring Basis
Level 1Level 2Level 3Total
Assets:
Money market accounts as of December 31, 2025
$941,134 $— $— $941,134 
Money market accounts as of December 31, 2024
1,209,474 — — 1,209,474 
Equity securities with readily determinable fair value as of December 31, 2025
14,858 — — 14,858 
Equity securities with readily determinable fair value as of December 31, 2024
7,425 — — 7,425 
Liabilities:
Contingent consideration liability from acquisition as of December 31, 2025
$— $— $1,223 $1,223 
Contingent consideration liability from acquisition as of December 31, 2024
— — 2,169 2,169 
Schedule of Fair Value of Level 3 Liability
The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands):
Year Ended December 31,
20252024
2023
Beginning of period balance$2,169 $2,061 $— 
Acquired liabilities
— — 1,993 
Performance target achievement payment(1,266)— — 
Changes in fair value included in earnings320 108 68 
End of period balance$1,223 $2,169 $2,061 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Supplemental Information Related to Leases
Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):
Year Ended December 31,
202520242023
Operating lease cost$15,381 $13,084 $11,484 
Cash paid for amounts included in the measurement of operating lease liabilities9,864 12,467 13,947 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities7,650 38,872 5,262 
December 31, 2025December 31, 2024
Weighted-average remaining lease term — operating leases7.1 years7.8 years
Weighted-average discount rate — operating leases8.1 %8.2 %
Schedule of Maturities of Lease Liabilities
Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
2026$14,297 
202714,594 
202813,605 
202911,974 
203011,343 
2031 and thereafter37,147 
Total lease payments102,960 
Less: imputed interest(2)
26,827 
Present value of lease liabilities$76,133 
____________________
(1)Operating lease payments exclude $4.4 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.
(2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.
v3.25.4
Liabilities (Tables)
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accounts Payable. Accrued Expenses and Other Current Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):
December 31,
2025		December 31,
2024
Accounts payable$22,200 $65,615 
Accrued expenses51,360 29,443 
Income taxes payable 1,785 28,045 
Holdback and working capital liabilities from business combinations, asset acquisitions and investments in unconsolidated entities
13,713 — 
Contingent consideration liability from acquisition
1,223 1,216 
Other current liabilities16,914 15,108 
Accounts payable, accrued expenses and other current liabilities$107,195 $139,427 

The components of other liabilities are as follows (in thousands):
December 31,
2025		December 31,
2024
Contingent consideration liability from acquisition$— $953 
Other liabilities11,735 14,526 
Other liabilities$11,735 $15,479 
v3.25.4
Debt, Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Debt, Commitments and Contingencies Disclosure [Abstract]  
Schedule of Carrying Values of Debt
The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):
December 31,
2025		December 31,
2024
Principal$500,000 $500,000 
Unamortized debt issuance costs(133)(3,319)
Net carrying amount$499,867 $496,681 

Interest expense related to the 2026 Notes is as follows (in thousands):
Year Ended December 31,
202520242023
Amortization of debt issuance costs$3,186 $3,166 $3,145 
Total interest expense$3,186 $3,166 $3,145 
The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands):
December 31,
2025		December 31,
2024
Principal$500,000 $500,000 
Unamortized debt issuance costs(10,359)(13,204)
Net carrying amount$489,641 $486,796 

Interest expense related to the 2029 Notes is as follows (in thousands):
Year Ended December 31,
20252024
Interest expense
$11,250 $6,593 
Amortization of debt issuance costs2,845 1,630 
Total interest expense$14,095 $8,223 
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
Stock-based compensation expense is included in the following line items in the consolidated statements of operations (in thousands):
Year Ended December 31,
202520242023
Cost of hardware and other revenue
$— $2 $5 
Sales and marketing2,441 2,833 3,522 
General and administrative10,474 13,080 13,028 
Research and development20,275 25,327 30,728 
Total stock-based compensation expense$33,190 $41,242 $47,283 

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):
 Year Ended December 31,
 202520242023
Stock options$3,902 $4,237 $4,166 
Restricted stock units29,082 36,792 42,924 
Employee stock purchase plan206 213 193 
Total stock-based compensation expense$33,190 $41,242 $47,283 
Tax (shortfall) / windfall benefit from stock-based awards
$(1,025)$1,829 $(508)
Summary of Assumptions Used for Estimating Fair Value of Stock Options
The following table summarizes the assumptions used for estimating the fair value of stock options granted:
 Year Ended December 31,
 202520242023
Volatility
39.0 - 39.3%
39.7 - 41.1%
40.9 - 41.9%
Expected term
5.6 - 5.7 years
5.5 - 5.6 years
5.4 - 5.6 years
Risk-free interest rate
3.7 - 4.2%
3.7 - 4.4%
3.3 - 4.4%
Dividend rate— %— %— %
Summary of Stock Option Activity
The following table summarizes stock option activity:
Number of
Options		Weighted
Average Exercise
Price Per Share		Weighted Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20241,123,860 $50.74 5.8$14,974 
Granted145,500 57.29 
Exercised(120,525)22.21 3,936 
Forfeited(51,552)66.07 
Expired(171)11.55 
Outstanding as of December 31, 20251,097,112 $54.02 5.8$5,187 
Vested and expected to vest as of December 31, 20251,097,112 $54.02 5.8$5,187 
Exercisable as of December 31, 2025649,482 $50.06 4.2$5,182 
Schedule of Unvested Restricted Stock Units
The following table summarizes RSU activity:
RSUs without Performance ConditionsRSUs with Performance Conditions
Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)		Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20241,819,320 $64.97 $110,615 154,361 $80.83 $9,385 
Granted709,762 53.15 25,205 49.97 
Vested(565,058)65.83 31,561 (61,895)74.15 3,329 
Forfeited(184,340)62.31 (9,799)85.35 
Outstanding as of December 31, 20251,779,684 $60.25 $90,799 107,872 $77.05 $5,504 
Vested and expected to vest as of December 31, 20251,779,684 $60.25 $90,799 55,872 $69.82 $2,851 
v3.25.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Components of Basic and Diluted EPS
The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):
 Year Ended December 31,
Numerator: 202520242023
Net income$131,628 $122,513 $80,340 
Net loss attributable to redeemable noncontrolling interests946 1,603 703 
Net income attributable to common stockholders - basic (A)132,574 124,116 81,043 
Add back total interest expense, net of tax, attributable to convertible senior notes
12,098 8,573 2,367 
Net income attributable to common stockholders - diluted (B)
$144,672 $132,689 $83,410 
Denominator:
Weighted average common shares outstanding — basic (C)49,795,191 49,641,763 49,818,448 
Dilutive effect of convertible senior notes, stock options and restricted stock units9,128,624 8,351,256 4,806,986 
Weighted average common shares outstanding — diluted (D)58,923,815 57,993,019 54,625,434 
Net income attributable to common stockholders per share:
Basic (A/C)$2.66 $2.50 $1.63 
Diluted (B/D)$2.46 $2.29 $1.53 
Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect
The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:
 Year Ended December 31,
 202520242023
Stock options774,004 579,678 626,976 
Restricted stock units11,300 1,700 255,325 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income before Income Taxes
The components of our income before income taxes are as follows (in thousands):
Year Ended December 31,
202520242023
Domestic$157,866 $138,111 $97,453 
Foreign8,740 3,563 372 
Total$166,606 $141,674 $97,825 
Schedule of Components of Income Tax Expense (Benefit)
The components of our income tax expense are as follows (in thousands):
Year Ended December 31,
202520242023
Current
Federal$(5,201)$40,131 $51,923 
State8,268 10,561 11,577 
Foreign4,579 3,098 1,715 
Total Current7,646 53,790 65,215 
Deferred
Federal30,383 (29,307)(40,519)
State(440)(5,277)(6,986)
Foreign31 88 (225)
Total Deferred29,974 (34,496)(47,730)
Total$37,620 $19,294 $17,485 
Schedule of Effective Income Tax Rate Reconciliation
The difference between the income tax expense at the federal statutory rate and income tax expense in the consolidated statements of operations is as follows:
Year Ended December 31,
202520242023
Amount
Percentage
Amount
Percentage
Amount
Percentage
U.S. Federal Statutory Tax Rate
$34,987 21.0 %$29,779 21.0 %$20,543 21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effect(1)
6,249 3.8 4,587 3.2 3,654 3.7 
Foreign Tax Effects
2,924 1.8 2,553 1.8 1,442 1.6 
Effect on Changes in Tax Laws or Rates Enacted in Current Period
— — — — — — 
Effect of Cross-Border Tax Laws
1,017 0.6 (4,720)(3.3)(4,288)(4.4)
Foreign Derived Intangible Income
4 — (4,844)(3.4)(4,288)(4.4)
Global Intangible Low-Taxed Income
1,013 0.6 124 0.1 — — 
Tax Credits
(11,279)(6.7)(14,236)(10.0)(7,005)(7.2)
Federal Research and Development Tax Credits
(11,279)(6.7)(14,236)(10.0)(7,005)(7.2)
Changes in Valuation Allowances
— — — — 44 — 
Nontaxable or Nondeductible Items
3,072 1.8 1,637 1.2 2,819 2.9 
Changes in Unrecognized Tax Benefits
83 — (320)(0.3)261 0.3 
Other Adjustments
567 0.3 14 — 15 — 
Effective Tax Rate
$37,620 22.6 %$19,294 13.6 %$17,485 17.9 %
_______________
(1)In 2025, state taxes in Virginia, Illinois, Pennsylvania, Florida and Utah made up the majority (greater than 50%) of the tax effect in this category. In 2024, state taxes in Virginia, Florida, Illinois and New York made up the majority (greater than 50%) of the tax effect in this category. In 2023, state taxes in Virginia, Pennsylvania and Massachusetts made up the majority (greater than 50%) of the tax effect in this category.
Schedule of Income Taxes Paid, Net of Refunds
The components of our cash paid for income taxes, net of refunds are as follows (in thousands):
Year Ended December 31,
202520242023
Federal
$30,080 $52,686 $50,973 
State
13,445 12,990 12,345 
Foreign
1,862 2,535 1,259 
Total$45,387 $68,211 $64,577 

Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions (in thousands):
Year Ended December 31,
202520242023
Virginia(2)
$6,570 $4,787 $— 
_______________
(2)In 2023, no state jurisdictions had income taxes paid (net of refunds) that exceeded 5%.
Schedule of Components of Deferred Tax Assets and Liabilities
The components of our net deferred tax assets (liabilities) are as follows (in thousands):
December 31,
20252024
Deferred tax assets, non-current
Provision for credit losses on accounts receivable$1,873 $1,459 
Depreciation316 292 
Accrued expenses8,473 6,615 
Deferred revenue3,451 2,997 
Operating lease liabilities18,849 18,149 
Stock-based compensation16,799 20,060 
Acquisition costs1,803 1,852 
Inventory reserve679 566 
Net operating losses4,850 1,610 
Tax credits4,470 4,334 
Capitalized research and development expenditures113,933 135,619 
Capped call premium
10,661 13,416 
Other2,123 3,430 
Total deferred tax assets, non-current prior to valuation allowance188,280 210,399 
Valuation allowance(5,632)(5,012)
Total deferred tax assets, non-current, net of valuation allowance182,648 205,387 
Deferred tax liabilities, non-current
Intangible assets and prepaid patent licenses(7,273)(2,574)
Operating lease right-of-use assets(13,002)(13,199)
Depreciation(7,787)(5,953)
Sales commissions(1,858)(1,706)
Equity investments (27)(161)
Other deferred tax liabilities
(446)(510)
Total deferred tax liabilities, non-current(30,393)(24,103)
Net deferred tax assets, non-current$152,255 $181,284 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):
Year Ended December 31,
202520242023
Beginning balance$9,124 $9,063 $7,596 
Additions based on tax positions of the current year1,693 1,978 1,589 
Additions based on tax positions of prior year289 617 204 
Decreases based on tax positions of prior year(57)(2)(205)
Decreases for tax positions taken in the prior year due to settlement
— (2,220)— 
Decreases due to lapse of applicable statute of limitations(1,257)(312)(121)
Ending balance$9,792 $9,124 $9,063 
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Reportable Segment Operational Data The reportable segment operational data is presented in the tables below (in thousands):
Year Ended December 31, 2025
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$605,261 $84,136 $— $— $689,397 
Hardware and other revenue314,389 11,599 (2,928)(1,270)321,790 
Total revenue
919,650 95,735 (2,928)(1,270)1,011,187 
Cost of SaaS and license revenue
69,986 26,214 354 (354)96,200 
Cost of hardware and other revenue
239,561 10,871 (2,871)(1,466)246,095 
Total cost of revenue
309,547 37,085 (2,517)(1,820)342,295 
Selling and marketing expense
98,039 25,749 — — 123,788 
General and administrative expense
102,647 7,771 — — 110,418 
Research and development expense
238,925 31,304 — — 270,229 
Amortization and depreciation expense
28,813 2,006 — — 30,819 
Total operating expenses
468,424 66,830 — — 535,254 
Operating income / (loss)$141,679 $(8,180)$(411)$550 $133,638 
Total assets
$2,181,210 $190,095 $(234,681)$(33)$2,136,591 
Reconciliation of operating income to income before income taxes
Operating income$133,638 
Interest expense(17,294)
Interest income45,617 
Other income / (expense), net4,645 
Income before income taxes$166,606 
Year Ended December 31, 2024
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$564,513 $66,685 $— $— $631,198 
Hardware and other revenue306,074 5,979 (2,769)(655)308,629 
Total revenue870,587 72,664 (2,769)(655)939,827 
Cost of SaaS and license revenue 68,666 20,809 329 (292)89,512 
Cost of hardware and other revenue 234,414 5,414 (2,630)(561)236,637 
Total cost of revenue 303,080 26,223 (2,301)(853)326,149 
Selling and marketing expense 88,899 22,343 — — 111,242 
General and administrative expense 101,401 7,478 — — 108,879 
Research and development expense 227,559 28,319 — — 255,878 
Amortization and depreciation expense 28,107 1,024 — — 29,131 
Total operating expenses445,966 59,164 — — 505,130 
Operating income / (loss)$121,541 $(12,723)$(468)$198 $108,548 
Total assets$2,081,214 $85,468 $(128,465)$(9)$2,038,208 
Reconciliation of operating income to income before income taxes
Operating income$108,548 
Interest expense(11,426)
Interest income47,359 
Other income / (expense), net(2,807)
Income before income taxes$141,674 
Year Ended December 31, 2023
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$514,673 $54,527 $— $— $569,200 
Hardware and other revenue309,778 6,501 (3,201)(596)312,482 
Total revenue
824,451 61,028 (3,201)(596)881,682 
Cost of SaaS and license revenue
71,639 17,852 (2,967)(626)85,898 
Cost of hardware and other revenue
237,660 5,760 (3,771)(388)239,261 
Total cost of revenue
309,299 23,612 (6,738)(1,014)325,159 
Selling and marketing expense
82,672 17,554 — — 100,226 
General and administrative expense
107,475 5,935 (480)— 112,930 
Research and development expense
220,106 25,008 — — 245,114 
Amortization and depreciation expense
30,337 1,087 — — 31,424 
Total operating expenses
440,590 49,584 (480)— 489,694 
Operating income / (loss)$74,562 $(12,168)$4,017 $418 $66,829 
Reconciliation of operating income to income before income taxes
Operating income$66,829 
Interest expense(3,429)
Interest income29,801 
Other income / (expense), net4,624 
Income before income taxes$97,825 
v3.25.4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Money market accounts    
Cash and Cash Equivalents [Line Items]    
Cash equivalents $ 941.1 $ 1,209.5
v3.25.4
Summary of Significant Accounting Policies - Accounts Receivable and Restricted Cash (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Concentration Risk [Line Items]      
Restricted cash included in other current assets and other assets $ 8,223 $ 8,431 $ 4,096
Other Current Assets      
Concentration Risk [Line Items]      
Restricted cash included in other current assets and other assets 2,100 2,200  
Other Assets      
Concentration Risk [Line Items]      
Restricted cash included in other current assets and other assets $ 6,100 $ 6,200  
Geographic Concentration Risk | Accounts Receivable | Outside of North America      
Concentration Risk [Line Items]      
Concentration risk percentage 8.00% 8.00%  
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of North America      
Concentration Risk [Line Items]      
Concentration risk percentage 5.00% 6.00% 4.00%
v3.25.4
Summary of Significant Accounting Policies - Credit Losses (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
portfolio_segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Credit loss expense (reversal) for accounts and notes receivable $ 1,900 $ 4,700 $ 1,000
Number of portfolio segments, accounts receivable | portfolio_segment 2    
Number of portfolio segments, notes receivable | portfolio_segment 1    
Interest receivable $ 700 200  
Notes Receivable      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Write-offs 0 4,000  
Loan receivable, interest income reduction $ 0 $ 500 $ 0
v3.25.4
Summary of Significant Accounting Policies - Leases (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Accounting Policies [Abstract]    
Sublease liability $ 0 $ 0
Finance lease, liability $ 0 $ 0
v3.25.4
Summary of Significant Accounting Policies - Convertible Senior Notes (Details) - Senior Notes - USD ($)
$ in Millions
Dec. 31, 2025
May 31, 2024
Jan. 20, 2021
Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Debt amount $ 500.0   $ 500.0
Interest rate     0.00%
Convertible Senior Notes due 2029      
Debt Instrument [Line Items]      
Debt amount $ 500.0 $ 500.0  
Interest rate   2.25%  
v3.25.4
Summary of Significant Accounting Policies - Capped Call Transactions (Details)
$ in Millions
May 31, 2024
USD ($)
Accounting Policies [Abstract]  
Capped call transaction cost $ 63.1
v3.25.4
Summary of Significant Accounting Policies - Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Feb. 10, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Redeemable noncontrolling interests $ 42,847   $ 44,747 $ 36,308 $ 23,988
OpenEye          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Percentage of business acquired 89.00%        
Noonlight          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Percentage of business acquired 99.00%        
CHeKT, Inc          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Percentage of business acquired 81.00% 81.00%      
v3.25.4
Summary of Significant Accounting Policies - Internal-Use Software (Details) - Internal-use software
Dec. 31, 2025
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
v3.25.4
Summary of Significant Accounting Policies - External Software (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounting Policies [Abstract]    
Capitalized cost $ 3.4 $ 2.4
v3.25.4
Summary of Significant Accounting Policies - Revenue Recognition (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
source
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Deferred Revenue Arrangement [Line Items]        
Number of primary revenue sources | source 3      
Service provider contract term 1 year      
Service provider renewal term 1 year      
Total revenue $ 1,011,187 $ 939,827 $ 881,682  
Percentage of revenue reserved for returns (percent) 1.00% 1.00% 1.00%  
Period for returns (up to) 1 year      
Deferred revenue for contract liabilities $ 29,884 $ 26,559 $ 22,885 $ 18,332
Total cost of revenue [1] $ 342,295 326,149 325,159  
Commission costs amortization period 3 years      
Software license revenue        
Deferred Revenue Arrangement [Line Items]        
Total cost of revenue $ 400 600 600  
Hardware and other revenue        
Deferred Revenue Arrangement [Line Items]        
Total revenue 321,790 308,629 312,482  
Deferred revenue for contract liabilities 4,000 4,300    
Total cost of revenue [1] 246,095 236,637 239,261  
Operating Segments | Alarm.com        
Deferred Revenue Arrangement [Line Items]        
Total revenue 919,650 870,587 824,451  
Total cost of revenue 309,547 303,080 309,299  
Operating Segments | Software license revenue | Alarm.com        
Deferred Revenue Arrangement [Line Items]        
Total revenue 17,700 20,300 23,200  
Operating Segments | Hardware and other revenue | Alarm.com        
Deferred Revenue Arrangement [Line Items]        
Total revenue 314,389 306,074 309,778  
Total cost of revenue $ 239,561 $ 234,414 $ 237,660  
Minimum        
Deferred Revenue Arrangement [Line Items]        
Subscriber contract term 3 years      
Minimum | Hardware and other revenue        
Deferred Revenue Arrangement [Line Items]        
Deferred revenue recognition period 12 months      
Maximum        
Deferred Revenue Arrangement [Line Items]        
Subscriber contract term 5 years      
Maximum | Hardware and other revenue        
Deferred Revenue Arrangement [Line Items]        
Deferred revenue recognition period 10 years      
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.4
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Accounts Receivable
 12 Months Ended
Dec. 31, 2025
industry
region
Industry Concentration Risk  
Concentration Risk [Line Items]  
Number of industries included in assessment | industry 1
Geographic Concentration Risk  
Concentration Risk [Line Items]  
Number of geographic regions included in assessment | region 1
v3.25.4
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
Total stock-based compensation expense $ 33,190,000 $ 41,242,000 $ 47,283,000
Tax (shortfall) / windfall benefit from stock-based awards (1,025,000) 1,829,000 (508,000)
Employee Stock | 2015 ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 200,000 $ 200,000 $ 200,000
Fair market value purchase discount 90.00%    
Maximum number of shares participant may purchase as a percentage of base compensation (not to exceed) 10.00%    
Maximum number of shares participant may purchase, fair market value (not to exceed) $ 15,000    
Purchase period 6 months    
v3.25.4
Summary of Significant Accounting Policies - 401(k) Defined Contribution Plan (Details) - 401(k) Defined Contribution Plan - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Contribution Plan Disclosure [Line Items]      
Employer matching contribution 100.00% 100.00% 100.00%
Maximum annual contributions per employee 10.00% 10.00% 10.00%
Maximum annual contributions per employee $ 5,000 $ 5,000 $ 5,000
Compensation expense $ 7,700,000 $ 7,500,000 $ 7,200,000
v3.25.4
Summary of Significant Accounting Policies - Goodwill, Intangible Assets and Long-lived Assets (Details) - USD ($)
 12 Months Ended
Oct. 01, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]        
Goodwill impairment $ 0 $ 0 $ 0 $ 0
Impairment of long-lived assets   $ 0 $ 0 $ 0
v3.25.4
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Advertising costs $ 7.7 $ 6.6 $ 2.9
v3.25.4
Summary of Significant Accounting Policies - Earnings Per Share (Details)
Dec. 31, 2025
Feb. 10, 2025
OpenEye    
Restructuring Cost and Reserve [Line Items]    
Percentage of business acquired 89.00%  
Noonlight    
Restructuring Cost and Reserve [Line Items]    
Percentage of business acquired 99.00%  
CHeKT, Inc    
Restructuring Cost and Reserve [Line Items]    
Percentage of business acquired 81.00% 81.00%
v3.25.4
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
 12 Months Ended
Jul. 27, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]          
Impairment loss on contract assets   $ 0 $ 0 $ 0  
Reimbursement of previously capitalized upfront payments to customers   0 0 6,774,000  
Contract asset, unamortized balance   $ 17,947,000 $ 12,088,000 $ 9,099,000 $ 13,975,000
One customer          
Disaggregation of Revenue [Line Items]          
Proceeds from previously capitalized upfront payments $ 6,900,000        
Reimbursement of previously capitalized upfront payments to customers 6,800,000        
Contract asset, unamortized balance 0        
One customer | SaaS and license revenue          
Disaggregation of Revenue [Line Items]          
Contract asset, revenue satisfied in previous period $ 100,000        
v3.25.4
Revenue from Contracts with Customers - Contract Asset and Contract Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Contract Assets      
Beginning of period balance $ 12,088 $ 9,099 $ 13,975
Additions to contract assets 15,524 10,292 7,837
Reimbursement of previously capitalized upfront payments to customers 0 0 (6,774)
Amortization or satisfaction of outstanding performance obligation of capitalized contract assets (9,665) (7,303) (5,939)
End of period balance 17,947 12,088 9,099
Contract Liabilities      
Beginning of period balance 26,559 22,885 18,332
Revenue deferred or acquired in period 33,903 26,883 22,861
Revenue recognized from amounts included in contract liabilities (30,578) (23,209) (18,308)
End of period balance $ 29,884 $ 26,559 $ 22,885
v3.25.4
Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Receivables [Abstract]    
Accounts receivable $ 149,163 $ 132,400
Allowance for credit losses (5,171) (3,870)
Allowance for product returns (2,140) (2,448)
Accounts receivable, net $ 141,852 $ 126,082
v3.25.4
Accounts Receivable, Net - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Provision for credit losses on accounts receivable $ 2,155 $ 950 $ 1,508
Reserve for product returns 3,071 3,187 4,399
Hardware and other revenue      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Reserve for product returns $ 3,100 $ 3,200 $ 4,400
v3.25.4
Accounts Receivable, Net - Schedule of Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance $ (3,870)    
(Provision for) / recovery of expected credit losses (2,155) $ (950) $ (1,508)
End of period balance (5,171) (3,870)  
Alarm.com and Certain Subsidiaries      
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance (3,777) (3,723)  
(Provision for) / recovery of expected credit losses (1,952) (956)  
Write-offs 798 902  
End of period balance (4,931) (3,777) (3,723)
All Other Subsidiaries      
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance (93) (141)  
(Provision for) / recovery of expected credit losses (203) 6  
Write-offs 56 42  
End of period balance $ (240) $ (93) $ (141)
v3.25.4
Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 18,238 $ 23,881
Work-in-process 372 595
Finished goods 75,819 62,959
Total inventory $ 94,429 $ 87,435
v3.25.4
Property and Equipment, Net - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation $ 11,200,000 $ 10,300,000 $ 11,200,000
Write-off of property and equipment $ 600,000 $ 0 $ 0
Furniture, fixtures and office equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Furniture, fixtures and office equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 5 years    
Computer software and hardware | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Computer software and hardware | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 5 years    
Internal-use software      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Internal-use software | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Internal-use software | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 5 years    
Real property | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 15 years    
Real property | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 39 years    
v3.25.4
Property and Equipment, Net - Components of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 149,441 $ 143,683
Accumulated depreciation (84,642) (80,478)
Property and equipment, net 64,799 63,205
Furniture, fixtures and office equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 11,320 10,325
Computer software and hardware    
Property, Plant and Equipment [Line Items]    
Total property and equipment 43,644 41,197
Internal-use software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 8,949 8,949
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment 13,372 14,809
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 38,004 34,397
Real property and improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 11,441 11,322
Land    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 22,711 $ 22,684
v3.25.4
Acquisitions - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Nov. 21, 2025
Aug. 15, 2025
Feb. 10, 2025
Apr. 21, 2023
Jan. 18, 2023
Nov. 30, 2024
Mar. 31, 2023
Jun. 30, 2026
Dec. 31, 2025
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination [Line Items]                          
Goodwill                 $ 224,987   $ 224,987 $ 154,211 $ 154,498
CHeKT, Inc                          
Business Combination [Line Items]                          
Ownership by noncontrolling owners     19.00%                    
RGS                          
Business Combination [Line Items]                          
Percentage of business acquired 100.00%                        
Cash paid to acquire business $ 77,200                        
Purchase price adjustment increase (decrease) 1,600                        
Acquisition related costs                     $ 800    
Goodwill $ 45,057                        
RGS | Developed Technology                          
Business Combination [Line Items]                          
Weighted-average useful life of intangible assets acquired 2 years                        
Intangible assets $ 4,279                        
RGS | Customer Relationships                          
Business Combination [Line Items]                          
Weighted-average useful life of intangible assets acquired 16 years                        
Intangible assets $ 28,947                        
Bridge to Renewables, Inc.                          
Business Combination [Line Items]                          
Percentage of business acquired   100.00%                      
Cash paid to acquire business   $ 12,400                      
Goodwill   3,100                      
Holdback liability from business combination   $ 1,600                      
CHeKT, Inc                          
Business Combination [Line Items]                          
Percentage of business acquired     81.00%           81.00%   81.00%    
Cash paid to acquire business     $ 23,600                    
Purchase price adjustment increase (decrease)     (200)                    
Acquisition related costs                     $ 500    
Goodwill, decrease                 $ 100        
Tax-related liability, decrease                 100        
Goodwill     23,488                    
Expected tax deductible amount of goodwill     0                    
Holdback liability from business combination     3,694                    
Payments for business combination holdback                   $ 500      
Redeemable noncontrolling interest     $ 6,352           $ 6,300   $ 6,300    
CHeKT, Inc | Forecast                          
Business Combination [Line Items]                          
Payments for business combination holdback               $ 3,000          
CHeKT, Inc | Developed Technology                          
Business Combination [Line Items]                          
Weighted-average useful life of intangible assets acquired     11 years                    
Intangible assets     $ 9,412                    
CHeKT, Inc | Customer Relationships                          
Business Combination [Line Items]                          
Weighted-average useful life of intangible assets acquired     3 years                    
Intangible assets     $ 486                    
CHeKT, Inc | Trade Name                          
Business Combination [Line Items]                          
Weighted-average useful life of intangible assets acquired     7 years                    
Intangible assets     $ 814                    
EBS                          
Business Combination [Line Items]                          
Percentage of business acquired         100.00%                
Cash paid to acquire business         $ 9,800                
Holdback liability from business combination         2,200                
Additional earn-out         2,500                
Contingent consideration liability from acquisition         $ 2,000                
Kapacity.io Solutions Oy                          
Business Combination [Line Items]                          
Payments to acquire developed technology           $ 1,300              
Asset acquisition, consideration transferred, holdback amount           200              
Transaction costs                       $ 100  
Asset acquisition consideration           $ 1,600              
Weighted-average useful life of intangible assets acquired           7 years              
Vintra, Inc                          
Business Combination [Line Items]                          
Payments to acquire developed technology       $ 5,500                  
Asset acquisition, consideration transferred, holdback amount       1,000                  
Transaction costs                         $ 400
Asset acquisition consideration       $ 7,100                  
Weighted-average useful life of intangible assets acquired       5 years                  
Asset acquisition, consideration transferred, deduction, loan amount             $ 300            
Consideration transferred, property and equipment       $ 100                  
v3.25.4
Acquisitions - Schedule of Consideration and Fair Value of Assets Acquired (Details) - USD ($)
$ in Thousands
Nov. 21, 2025
Feb. 10, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Estimated Tangible and Intangible Net Assets:          
Goodwill     $ 224,987 $ 154,211 $ 154,498
RGS          
Calculation of Purchase Consideration:          
Cash paid, net of working capital adjustment $ 78,811        
Total consideration 78,811        
Estimated Tangible and Intangible Net Assets:          
Accounts receivable 4,887        
Other current assets 16        
Deferred tax assets 638        
Accounts payable (356)        
Accrued expenses and other current liabilities (1,588)        
Deferred revenue (3,069)        
Goodwill 45,057        
Total estimated tangible and intangible net assets 78,811        
RGS | Customer Relationships          
Estimated Tangible and Intangible Net Assets:          
Intangible assets acquired 28,947        
RGS | Developed Technology          
Estimated Tangible and Intangible Net Assets:          
Intangible assets acquired $ 4,279        
CHeKT, Inc          
Calculation of Purchase Consideration:          
Cash paid, net of working capital adjustment   $ 23,382      
Holdback liability from business combination   3,694      
Total consideration   27,076      
Estimated Tangible and Intangible Net Assets:          
Cash   195      
Accounts receivable   308      
Inventory   645      
Other current assets   4      
Accounts payable   (150)      
Accrued expenses and other current liabilities   (212)      
Deferred tax liability   (1,462)      
Other liabilities   (100)      
Redeemable noncontrolling interest   (6,352) $ (6,300)    
Goodwill   23,488      
Total estimated tangible and intangible net assets   27,076      
CHeKT, Inc | Customer Relationships          
Estimated Tangible and Intangible Net Assets:          
Intangible assets acquired   486      
CHeKT, Inc | Developed Technology          
Estimated Tangible and Intangible Net Assets:          
Intangible assets acquired   9,412      
CHeKT, Inc | Trade Name          
Estimated Tangible and Intangible Net Assets:          
Intangible assets acquired   $ 814      
v3.25.4
Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Beginning balance $ 154,211 $ 154,498
Goodwill acquired 71,735  
Measurement period adjustment (1,858)  
Foreign currency translation adjustment 899 (287)
Ending balance 224,987 154,211
Alarm.com    
Goodwill [Roll Forward]    
Beginning balance 154,211 154,498
Goodwill acquired 23,579  
Measurement period adjustment (91)  
Foreign currency translation adjustment 899 (287)
Ending balance 178,598 154,211
Other    
Goodwill [Roll Forward]    
Beginning balance 0 0
Goodwill acquired 48,156  
Measurement period adjustment (1,767)  
Foreign currency translation adjustment 0 0
Ending balance $ 46,389 $ 0
v3.25.4
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)
 12 Months Ended
Oct. 01, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Nov. 21, 2025
Aug. 15, 2025
Feb. 10, 2025
Finite-Lived Intangible Assets [Line Items]              
Goodwill   $ 224,987,000 $ 154,211,000 $ 154,498,000      
Goodwill impairment $ 0 0 0 0      
Amortization   19,400,000 18,600,000 19,300,000      
Impairment of long-lived assets   0 0 0      
Alarm.com              
Finite-Lived Intangible Assets [Line Items]              
Goodwill   $ 178,598,000 154,211,000 $ 154,498,000      
Intangible assets written off     $ 300,000        
CHeKT, Inc              
Finite-Lived Intangible Assets [Line Items]              
Percentage of business acquired   81.00%         81.00%
Goodwill, before measurement period adjustments             $ 23,600,000
Goodwill             $ 23,488,000
Bridge to Renewables, Inc.              
Finite-Lived Intangible Assets [Line Items]              
Percentage of business acquired           100.00%  
Goodwill           $ 3,100,000  
RGS              
Finite-Lived Intangible Assets [Line Items]              
Percentage of business acquired         100.00%    
Goodwill         $ 45,057,000    
EnergyHub              
Finite-Lived Intangible Assets [Line Items]              
Accumulated balance of goodwill impairments   $ 4,800,000          
v3.25.4
Goodwill and Intangible Assets, Net - Schedule of Net Carrying Amount of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance $ 63,159 $ 78,564
Intangible assets acquired 53,576 1,631
Capitalized software development costs 1,354 1,798
Amortization (18,737) (18,834)
Ending balance 99,352 63,159
Customer Relationships    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 29,625 39,294
Intangible assets acquired 34,120 0
Capitalized software development costs 0 0
Amortization (8,721) (9,669)
Ending balance 55,024 29,625
Developed Technology    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 30,543 37,174
Intangible assets acquired 18,398 1,585
Capitalized software development costs 0 0
Amortization (9,320) (8,216)
Ending balance 39,621 30,543
Trade Name    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 500 1,217
Intangible assets acquired 1,058 0
Capitalized software development costs 0 0
Amortization (256) (717)
Ending balance 1,302 500
Capitalized Software Development Costs    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 2,445 879
Intangible assets acquired 0 0
Capitalized software development costs 1,354 1,798
Amortization (440) (232)
Ending balance 3,359 2,445
Other    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 46 0
Intangible assets acquired 0 46
Capitalized software development costs 0 0
Amortization 0 0
Ending balance $ 46 $ 46
v3.25.4
Goodwill and Intangible Assets, Net - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 261,726 $ 206,796  
Accumulated Amortization (162,374) (143,637)  
Net Carrying Value 99,352 63,159 $ 78,564
Customer Relationships      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 162,400 128,280  
Accumulated Amortization (107,376) (98,655)  
Net Carrying Value 55,024 29,625 39,294
Developed Technology      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 89,714 71,316  
Accumulated Amortization (50,093) (40,773)  
Net Carrying Value 39,621 30,543 37,174
Trade Name      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 5,532 4,474  
Accumulated Amortization (4,230) (3,974)  
Net Carrying Value 1,302 500 1,217
Capitalized Software Development Costs      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 4,034 2,680  
Accumulated Amortization (675) (235)  
Net Carrying Value 3,359 2,445 879
Other      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 46 46  
Accumulated Amortization 0 0  
Net Carrying Value $ 46 $ 46 $ 0
Weighted-Average      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 8 years 3 months 18 days 4 years 7 months 6 days  
Weighted-Average | Customer Relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 10 years 9 months 18 days 5 years 3 months 18 days  
Weighted-Average | Developed Technology      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 5 years 2 months 12 days 4 years  
Weighted-Average | Trade Name      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 5 years 2 years 10 months 24 days  
Weighted-Average | Capitalized Software Development Costs      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 3 years 9 months 18 days 3 years 8 months 12 days  
Weighted-Average | Other      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 5 years 5 years  
v3.25.4
Goodwill and Intangible Assets, Net - Schedule of Future Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]      
2026 $ 23,448    
2027 20,325    
2028 14,550    
2029 7,683    
2030 6,498    
2031 and thereafter 26,848    
Net Carrying Value $ 99,352 $ 63,159 $ 78,564
v3.25.4
Investments in Unconsolidated Entities - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended
Nov. 20, 2025
Jun. 06, 2025
May 30, 2025
Apr. 28, 2025
Dec. 31, 2024
May 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Feb. 28, 2021
Dec. 31, 2025
Jun. 11, 2025
Jul. 31, 2019
Hardware Supplier                        
Schedule of Equity Method Investments [Line Items]                        
Conversion of outstanding notes receivable                       $ 5.6
Conversion of outstanding notes receivable (in shares)                       9,520,832
Investment         $ 5.6         $ 5.6    
Pronet                        
Schedule of Equity Method Investments [Line Items]                        
Payments to acquire equity method investments $ 30.1                      
Ownership percentage in equity method investment 20.30%                 20.30%    
Safe Haven and All Access                        
Schedule of Equity Method Investments [Line Items]                        
Ownership percentage in equity method investment                   32.50%    
Safe Haven and All Access | Trade Names and Customer Relationships | Minimum                        
Schedule of Equity Method Investments [Line Items]                        
Finite-lived intangible asset, useful life                   9 years    
Safe Haven and All Access | Trade Names and Customer Relationships | Maximum                        
Schedule of Equity Method Investments [Line Items]                        
Finite-lived intangible asset, useful life                   14 years    
Safe Haven                        
Schedule of Equity Method Investments [Line Items]                        
Payments to acquire equity method investments     $ 119.3                  
Ownership percentage in equity method investment     32.50%                  
Payments to acquire equity method investments, holdback amount     $ 6.3                  
All Access                        
Schedule of Equity Method Investments [Line Items]                        
Payments to acquire equity method investments   $ 19.2                    
Ownership percentage in equity method investment   32.50%                    
Payments to acquire equity method investments, holdback amount   $ 1.0                    
SafeStreets                        
Schedule of Equity Method Investments [Line Items]                        
Payments to acquire equity method investments       $ 29.1                
Ownership percentage in equity method investment       24.70%           24.70%    
SafeStreets | Trade Name                        
Schedule of Equity Method Investments [Line Items]                        
Finite-lived intangible asset, useful life                   10 years    
SafeStreets | Customer Relationships                        
Schedule of Equity Method Investments [Line Items]                        
Finite-lived intangible asset, useful life                   11 years    
Technology Partner                        
Schedule of Equity Method Investments [Line Items]                        
Investment         5.7         $ 5.7    
Cash purchase of shares                 $ 5.0      
Technology Partner | Series B-2 Preferred Stock                        
Schedule of Equity Method Investments [Line Items]                        
Shares purchased (in shares)                 1,000,000      
Technology Partner, Two                        
Schedule of Equity Method Investments [Line Items]                        
Investment         5.1         5.1    
Cash purchase of shares               $ 5.1        
Technology Partner, Two | Series A Preferred Stock                        
Schedule of Equity Method Investments [Line Items]                        
Shares purchased (in shares)               4,231,717        
Technology Partner, Three                        
Schedule of Equity Method Investments [Line Items]                        
Investment         4.5         $ 4.5 $ 4.5  
Cash purchase of shares         $ 1.5 $ 1.5 $ 1.5          
Equity ownership percentage                     25.90%  
v3.25.4
Investments in Unconsolidated Entities - Summary of Investments in Unconsolidated Entities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Nov. 20, 2025
Apr. 28, 2025
Dec. 31, 2024
Carrying Value        
Carrying value, other unconsolidated entities $ 26,148     $ 17,170
Carrying value, total 226,931     17,170
Excess Carrying Value of Investment Over Proportionate Share of Net Assets        
Excess carrying value of investment over proportionate share of net assets, other unconsolidated entities 707     733
Excess carrying value of investment over proportionate share of net assets, total $ 174,985     733
Safe Haven and All Access        
Schedule of Equity Method Investments [Line Items]        
Ownership Percentage 32.50%      
Carrying Value        
Carrying value, equity method investments $ 141,205     0
Excess Carrying Value of Investment Over Proportionate Share of Net Assets        
Excess carrying value of investment over proportionate share of net assets, equity method investments $ 143,134     0
SafeStreets        
Schedule of Equity Method Investments [Line Items]        
Ownership Percentage 24.70%   24.70%  
Carrying Value        
Carrying value, equity method investments $ 29,436     0
Excess Carrying Value of Investment Over Proportionate Share of Net Assets        
Excess carrying value of investment over proportionate share of net assets, equity method investments $ 31,144     0
Pronet        
Schedule of Equity Method Investments [Line Items]        
Ownership Percentage 20.30% 20.30%    
Carrying Value        
Carrying value, equity method investments $ 30,142     0
Excess Carrying Value of Investment Over Proportionate Share of Net Assets        
Excess carrying value of investment over proportionate share of net assets, equity method investments $ 0     $ 0
v3.25.4
Investments in Unconsolidated Entities - Schedule of Equity Method Income of Investments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]      
Income from equity method investments, net $ 2,642 $ 133 $ 0
v3.25.4
Investments in Unconsolidated Entities - Summary of Related Party Transactions and Balances Outstanding (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]      
Total revenue $ 1,011,187 $ 939,827 $ 881,682
Interest income from equity method investees 45,617 47,359 29,801
Distributions received from equity method investees 7,763 0 $ 0
Interest receivable from equity method investees 700 200  
Accounts receivable from equity method investees 149,163 132,400  
Related Party      
Schedule of Equity Method Investments [Line Items]      
Distributions received from equity method investees 7,763 0  
Equity method investees      
Schedule of Equity Method Investments [Line Items]      
Total revenue 730,488 1,565  
Equity method investees | Related Party      
Schedule of Equity Method Investments [Line Items]      
Total revenue 17,411 39  
Interest income from equity method investees 1,096 2  
Outstanding principal from loans to equity method investees 21,947 145  
Interest receivable from equity method investees 381 0  
Accounts receivable from equity method investees 1,774 82  
Total amounts receivable from equity method investees $ 24,102 $ 227  
v3.25.4
Investments in Unconsolidated Entities - Summarized Financial Information of Equity Method Investees (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]      
Revenue $ 1,011,187 $ 939,827 $ 881,682
Operating income 133,638 108,548 66,829
Net income 131,628 122,513 $ 80,340
Current assets 1,272,511 1,481,592  
Current liabilities 663,140 188,806  
Equity method investees      
Schedule of Equity Method Investments [Line Items]      
Revenue 730,488 1,565  
Gross profit 300,352 688  
Operating income 106,050 (176)  
Net income 64,131 (332)  
Net income attributable to the equity method investees 64,131 (332)  
Current assets 107,854 470  
Noncurrent assets 548,486 1  
Current liabilities 150,650 267  
Noncurrent liabilities $ 209,872 $ 239  
v3.25.4
Other Assets - Loan to Safe Streets (Details) - Service Provider, Two - Notes Receivable - USD ($)
$ in Millions
Jan. 30, 2025
Dec. 31, 2025
Financing Receivable, Nonaccrual [Line Items]    
Outstanding principal from loans $ 21.5 $ 21.5
Basis spread on variable rate 3.00%  
Debt term, interest payments in kind 2 years  
v3.25.4
Other Assets - Loan to a Distribution Partner (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Provision for credit losses on notes receivable     $ 748 $ 3,996 $ 3  
Revenue from equity method investees     1,011,187 939,827 881,682  
Distribution Partner | Loan Receivables            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Interest rate           12.00%
Provision for credit losses on notes receivable   $ 4,000        
Loan receivable, interest income reduction   $ 500        
Write-offs $ 4,000          
Revenue from equity method investees     $ 1,800 $ 2,600 $ 3,000  
v3.25.4
Other Assets - Loan to a Service Provider Partner (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jul. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Provision for credit losses on notes receivable   $ 748 $ 3,996 $ 3  
Total revenue   1,011,187 939,827 881,682  
Service Provider | Notes Receivable          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Notes receivable, maximum available         $ 2,500
Interest rate         9.00%
Provision for credit losses on notes receivable $ 700        
Outstanding principal from loans   900 1,000    
Total revenue   $ 100 $ 200 $ 200  
v3.25.4
Other Assets - Schedule of Notes Receivable Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Provision for expected credit losses $ (748) $ (3,996) $ (3)
Loan Receivables      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance (1) (5)  
Provision for expected credit losses (748) (3,996)  
Write-offs 0 4,000  
End of period balance $ (749) $ (1) $ (5)
v3.25.4
Other Assets - Credit Quality Indicators (Details) - Loan Receivables - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year $ 22,600 $ 500
Originated in fiscal year before current fiscal year 500 146
Originated in two years before current fiscal year 447 1,500
Originated in three years before current fiscal year 1,500 0
Originated in four years before current fiscal year 0 993
Prior 943 0
Total 25,990 3,139
Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 22,600 500
Originated in fiscal year before current fiscal year 500 146
Originated in two years before current fiscal year 447 1,500
Originated in three years before current fiscal year 1,500 0
Originated in four years before current fiscal year 0 993
Prior 0 0
Total 25,047 3,139
30-59 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in four years before current fiscal year 0 0
Prior 0 0
Total 0 0
60-89 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in four years before current fiscal year 0 0
Prior 0 0
Total 0 0
90-119 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in four years before current fiscal year 0 0
Prior 0 0
Total 0 0
120+ days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in four years before current fiscal year 0 0
Prior 943 0
Total $ 943 $ 0
v3.25.4
Other Assets - Allowance for Credit Losses- Narrative (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
contract
Dec. 31, 2024
USD ($)
contract
Dec. 31, 2023
USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]      
Nonaccrual notes receivable, number of contracts | contract 1 0  
Interest income recognized for notes receivables in nonaccrual status $ 0 $ 0 $ 0
Notes Receivable      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Nonaccrual notes receivable without related allowance for credit loss 200,000 0  
Notes receivable 90 days or more past due still accruing $ 0 $ 0  
v3.25.4
Other Assets - Prepaid Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 19.4 $ 16.1
v3.25.4
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts $ 941,134 $ 1,209,474
Equity securities with readily determinable fair value 14,858 7,425
Contingent consideration liability from acquisition 1,223 2,169
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 941,134 1,209,474
Equity securities with readily determinable fair value 14,858 7,425
Contingent consideration liability from acquisition 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 0 0
Equity securities with readily determinable fair value 0 0
Contingent consideration liability from acquisition 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 0 0
Equity securities with readily determinable fair value 0 0
Contingent consideration liability from acquisition $ 1,223 $ 2,169
v3.25.4
Fair Value Measurements - Summary of Fair Value of Level 3 Liability (Details) - Contingent Consideration Liability - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Beginning of period balance   $ 2,169 $ 2,061 $ 0
Acquired liabilities $ 1,300 0 0 1,993
Performance target achievement payment   (1,266) 0 0
Changes in fair value included in earnings   320 108 68
End of period balance   $ 1,223 $ 2,169 $ 2,061
v3.25.4
Fair Value Measurements - Narrative (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Jan. 18, 2023
USD ($)
performance_target
Jun. 30, 2025
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Cash and cash equivalents     $ 960,584 $ 1,220,701 $ 696,983
Other assets noncurrent     43,120 24,162  
Other current assets     75,646 47,374  
Unrealized gain (loss) on equity securities     4,700 (100)  
Number of performance targets | performance_target 2        
Contingent Consideration Liability          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Acquired liabilities   $ 1,300 $ 0 0 $ 1,993
Expected Achievement          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input     1    
Weighted-Average | Discount Rate          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input     0.049    
Minimum | Discount Rate          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input     0.049    
Maximum | Discount Rate          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input     0.050    
EBS          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Percentage of business acquired 100.00%        
Additional earn-out $ 2,500        
Contingent consideration liability from acquisition $ 2,000        
Money market accounts          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Cash and cash equivalents     $ 933,000 1,201,400  
Other assets noncurrent     6,100 6,200  
Other current assets     $ 2,000 $ 1,900  
v3.25.4
Leases - Narrative (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2024
renewal_option
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Leases [Abstract]        
Number of renewal options | renewal_option 2      
Lease renewal term 5 years      
Cash received from landlord incentives | $   $ 4.5 $ 0.0 $ 0.4
v3.25.4
Leases - Supplemental Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 15,381 $ 13,084 $ 11,484
Cash paid for amounts included in the measurement of operating lease liabilities 9,864 12,467 13,947
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 7,650 $ 38,872 $ 5,262
Weighted-average remaining lease term — operating leases 7 years 1 month 6 days 7 years 9 months 18 days  
Weighted-average discount rate — operating leases 8.10% 8.20%  
v3.25.4
Leases - Maturities of Leases Liabilities (Details)
Dec. 31, 2025
USD ($)
Maturities of Lease Liabilities Under Topic 842  
2026 $ 14,297,000
2027 14,594,000
2028 13,605,000
2029 11,974,000
2030 11,343,000
2031 and thereafter 37,147,000
Total lease payments 102,960,000
Less: imputed interest 26,827,000
Present value of lease liabilities 76,133,000
Legally binding minimum lease payments on leases not yet commenced 4,400,000
Amount for options to extend lease $ 0
v3.25.4
Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accounts payable $ 22,200 $ 65,615
Accrued expenses 51,360 29,443
Income taxes payable 1,785 28,045
Holdback and working capital liabilities from business combinations, asset acquisitions and investments in unconsolidated entities 13,713 0
Contingent consideration liability from acquisition 1,223 1,216
Other current liabilities 16,914 15,108
Accounts payable, accrued expenses and other current liabilities $ 107,195 $ 139,427
v3.25.4
Liabilities - Other Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Contingent consideration liability from acquisition $ 0 $ 953
Other liabilities 11,735 14,526
Other liabilities $ 11,735 $ 15,479
v3.25.4
Debt, Commitments and Contingencies - Convertible Senior Notes - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
May 31, 2024
USD ($)
day
$ / shares
shares
Jan. 20, 2021
USD ($)
day
$ / shares
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
shares
Debt Instrument [Line Items]          
Capped call transaction cost $ 63,100        
Purchases of treasury stock     $ 41,671 $ 75,394 $ 27,298
Treasury Stock          
Debt Instrument [Line Items]          
Purchases of treasury stock $ 75,000   $ 41,561 $ 75,000 $ 27,298
Purchases of treasury stock (in shares) | shares 1,117,068   772,494 1,117,068 487,918
Convertible Senior Notes due 2026          
Debt Instrument [Line Items]          
Proceeds from issuance of debt   $ 484,300      
Debt issuance costs   $ 15,700      
Redemption price percentage   100.00%      
Share conversion ratio   0.0067939      
Conversion price (in dollars per share) | $ / shares   $ 147.19      
Share price (in dollars per share) | $ / shares     $ 51.02    
Convertible Senior Notes due 2026 | Redemption Period One          
Debt Instrument [Line Items]          
Redemption price percentage   100.00%      
Threshold percentage of stock price trigger   130.00%      
Threshold trading days | day   20      
Threshold consecutive trading days | day   30      
Convertible Senior Notes due 2026 | Redemption Period Two          
Debt Instrument [Line Items]          
Threshold percentage of stock price trigger   130.00%      
Threshold trading days | day   20      
Threshold consecutive trading days | day   30      
Number of business days | day   5      
Number of consecutive trading days | day   10      
Threshold percent of last reported sale price   98.00%      
Convertible Senior Notes due 2026 | Senior Notes          
Debt Instrument [Line Items]          
Debt amount   $ 500,000 $ 500,000    
Interest rate   0.00%      
Effective interest rate   0.60%      
Debt instrument, fair value     $ 499,100 $ 473,800  
2017 Facility | Line of Credit | Revolving Credit Facility          
Debt Instrument [Line Items]          
Long-term debt   $ 110,000      
Convertible Senior Notes due 2029          
Debt Instrument [Line Items]          
Proceeds from issuance of debt $ 485,200        
Debt issuance costs $ 14,800        
Redemption price percentage 100.00%        
Share conversion ratio 0.0114571        
Conversion price (in dollars per share) | $ / shares $ 87.28        
Share price (in dollars per share) | $ / shares     $ 51.02    
Convertible Senior Notes due 2029 | Redemption Period One          
Debt Instrument [Line Items]          
Redemption price percentage 100.00%        
Threshold percentage of stock price trigger 130.00%        
Threshold trading days | day 20        
Threshold consecutive trading days | day 30        
Debt instrument, amount outstanding threshold, not subject to redemption $ 75,000        
Convertible Senior Notes due 2029 | Redemption Period Two          
Debt Instrument [Line Items]          
Threshold percentage of stock price trigger 130.00%        
Threshold trading days | day 20        
Threshold consecutive trading days | day 30        
Number of business days | day 5        
Number of consecutive trading days | day 10        
Threshold percent of last reported sale price 98.00%        
Convertible Senior Notes due 2029 | Senior Notes          
Debt Instrument [Line Items]          
Debt amount $ 500,000   $ 500,000    
Interest rate 2.25%        
Effective interest rate 2.90%        
Debt instrument, fair value     $ 477,300 $ 496,700  
v3.25.4
Debt, Commitments and Contingencies - Carrying Amount of Liability Component (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Convertible Senior Notes due 2026    
Debt Instrument [Line Items]    
Principal $ 500,000 $ 500,000
Unamortized debt issuance costs (133) (3,319)
Net carrying amount 499,867 496,681
Convertible Senior Notes due 2029    
Debt Instrument [Line Items]    
Principal 500,000 500,000
Unamortized debt issuance costs (10,359) (13,204)
Net carrying amount $ 489,641 $ 486,796
v3.25.4
Debt, Commitments and Contingencies - Summary of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Amortization of debt issuance costs $ 3,186 $ 3,166 $ 3,145
Total interest expense 3,186 3,166 $ 3,145
Convertible Senior Notes due 2029      
Debt Instrument [Line Items]      
Interest expense 11,250 6,593  
Amortization of debt issuance costs 2,845 1,630  
Total interest expense $ 14,095 $ 8,223  
v3.25.4
Debt, Commitments and Contingencies - Capped Call - Narrative (Details)
$ / shares in Units, $ in Millions
May 31, 2024
USD ($)
$ / shares
Derivative [Line Items]  
Capped call transaction cost | $ $ 63.1
Cap price (in dollars per share) $ 134.28
Convertible Senior Notes due 2029  
Derivative [Line Items]  
Conversion price (in dollars per share) $ 87.28
v3.25.4
Debt, Commitments and Contingencies - Acquired Debt - EBS - Narrative (Details) - EBS - USD ($)
Dec. 31, 2023
Jan. 18, 2023
Debt Instrument [Line Items]    
Percentage of business acquired   100.00%
Outstanding debt amount   $ 2,900,000
Short-term debt $ 0  
v3.25.4
Debt, Commitments and Contingencies - Legal Proceedings - Narrative (Details) - Pending Litigation
 1 Months Ended
Apr. 18, 2022
proceeding
Jan. 10, 2022
patent
Jul. 22, 2021
patent
Oct. 31, 2019
patent
EcoFactor, Inc. vs. Alarm.com Holdings, Inc.        
Loss Contingencies [Line Items]        
Number of patents allegedly infringed | patent   5   2
Number of reexamination proceedings | proceeding 4      
Number of reexamination proceedings, unpatentable | proceeding 3      
Causam Enterprises, Inc vs Alarm.com Holdings, Inc        
Loss Contingencies [Line Items]        
Number of patents allegedly infringed | patent     4  
v3.25.4
Stockholders' Equity (Details)
 12 Months Ended
May 31, 2024
USD ($)
shares
Feb. 15, 2023
USD ($)
Dec. 03, 2020
USD ($)
Dec. 31, 2025
USD ($)
class_of_stock
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
shares
Jul. 01, 2015
shares
Class of Stock [Line Items]              
Number of classes of stock authorized | class_of_stock       2      
Common stock, shares authorized (in shares)       300,000,000 300,000,000   300,000,000
Preferred stock, shares authorized (in shares)       10,000,000 10,000,000   10,000,000
Common stock, shares issued (in shares)       53,540,939 52,756,077    
Common stock, shares outstanding (in shares)       49,630,714 49,618,346    
Preferred stock, shares issued (in shares)       0 0    
Preferred stock, shares outstanding (in shares)       0 0    
Common stock votes per share       1      
Stock repurchase program, authorized amount | $   $ 100,000,000.0 $ 100,000,000.0        
Period of stock repurchase   2 years 3 years        
Payment of tax withholding related to vesting of restricted stock units | $       $ 0 $ 3,401,000 $ 2,621,000  
Treasury Stock              
Class of Stock [Line Items]              
Purchases of treasury stock (in shares) 1,117,068     772,494 1,117,068 487,918  
Purchases of treasury stock | $       $ 41,600,000 $ 75,000,000.0 $ 27,300,000  
May 2024 Repurchase Program              
Class of Stock [Line Items]              
Stock repurchase program, authorized amount | $ $ 100,000,000.0            
Period of stock repurchase 2 years            
v3.25.4
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 33,190 $ 41,242 $ 47,283
Tax (shortfall) / windfall benefit from stock-based awards (1,025) 1,829 (508)
Stock options      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 3,902 4,237 4,166
Restricted stock units      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 29,082 36,792 42,924
Employee stock purchase plan      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 206 213 193
Cost of hardware and other revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 0 2 5
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 2,441 2,833 3,522
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 10,474 13,080 13,028
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 20,275 $ 25,327 $ 30,728
v3.25.4
Stock-Based Compensation - 2025 Equity Incentive Plan (Details)
Dec. 31, 2025
shares
2025 Plan  
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]  
Shares available to be issued (in shares) 10,774,498
v3.25.4
Stock-Based Compensation - Stock Options (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Award vesting period 5 years    
Granted (in shares) 145,500 138,750 237,400
Weighted average grant date fair value for stock options (USD per share) $ 24.94 $ 29.16 $ 23.01
Fair value of stock options vested during period $ 3,800,000 $ 4,200,000 $ 3,300,000
Aggregate intrinsic value of stock options exercised during period 3,936,000 9,300,000 5,600,000
Compensation cost not yet recognized on nonvested awards 5,100,000    
Cash received from exercise of stock options $ 2,700,000 $ 8,300,000 $ 2,000,000.0
2025 and 2015 Plan      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Unvested shares of common stock outstanding (shares) 0 0  
Liability from proceeds of early exercise of stock options $ 0 $ 0  
Stock options      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Dividend rate 0.00% 0.00% 0.00%
Compensation cost not yet recognized, period for recognition 2 years 2 months 12 days    
Stock options | 2025 and 2015 Plan      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Award vesting period 5 years    
Award expiration period (in years) 10 years    
Repurchase of unvested shares (in shares) 0 0 0
v3.25.4
Stock-Based Compensation - Assumptions Used for Estimating Fair Value (Details) - Stock options
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Volatility, minimum 39.00% 39.70% 40.90%
Volatility, maximum 39.30% 41.10% 41.90%
Risk-free interest rate, minimum 3.70% 3.70% 3.30%
Risk-free interest rate, maximum 4.20% 4.40% 4.40%
Dividend rate 0.00% 0.00% 0.00%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 5 years 7 months 6 days 5 years 6 months 5 years 4 months 24 days
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 5 years 8 months 12 days 5 years 7 months 6 days 5 years 7 months 6 days
v3.25.4
Stock-Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Options      
Beginning balance (in shares) 1,123,860    
Granted (in shares) 145,500 138,750 237,400
Exercised (in shares) (120,525)    
Forfeited (in shares) (51,552)    
Expired (in shares) (171)    
Ending balance (in shares) 1,097,112 1,123,860  
Weighted Average Exercise Price Per Share      
Beginning balance (USD per share) $ 50.74    
Granted (USD per share) 57.29    
Exercised (USD per share) 22.21    
Forfeited (USD per share) 66.07    
Expired (USD per share) 11.55    
Ending balance (USD per share) $ 54.02 $ 50.74  
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value      
Outstanding, weighted average remaining contractual life (in years) 5 years 9 months 18 days 5 years 9 months 18 days  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value [Roll Forward]      
Outstanding, beginning balance, aggregate intrinsic value $ 14,974    
Aggregate intrinsic value of stock options exercised during period 3,936 $ 9,300 $ 5,600
Outstanding, ending balance, aggregate intrinsic value $ 5,187 $ 14,974  
Vested and expected to vest (in shares) 1,097,112    
Vested and expected to vest, weighted average exercise (USD per share) $ 54.02    
Vested and expected to vest, weighted average remaining contractual life (in years) 5 years 9 months 18 days    
Vested and expected to vest, aggregate intrinsic value $ 5,187    
Exercisable (in shares) 649,482    
Exercisable, weighted average exercise (USD per share) $ 50.06    
Exercisable, weighted average remaining contractual life (in years) 4 years 2 months 12 days    
Exercisable, aggregate intrinsic value $ 5,182    
v3.25.4
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
RSUs without Performance Conditions      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 709,762 628,394 558,747
Unrecognized compensation expense $ 53.2    
Compensation cost not yet recognized, period for recognition 2 years 6 months    
Granted (USD per share) $ 53.15 $ 65.29 $ 55.40
Fair value of shares vested in period $ 37.2 $ 37.0 $ 45.3
RSUs with Performance Conditions      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 25,205 0 0
Unrecognized compensation expense $ 1.3    
Compensation cost not yet recognized, period for recognition 2 years 2 months 12 days    
Granted (USD per share) $ 49.97    
Fair value of shares vested in period $ 4.6 $ 2.0 $ 3.2
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
v3.25.4
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
RSUs without Performance Conditions      
Number of RSUs      
Beginning balance (in shares) 1,819,320    
Granted (in shares) 709,762 628,394 558,747
Vested (in shares) (565,058)    
Forfeited (in shares) (184,340)    
Ending balance (in shares) 1,779,684 1,819,320  
Weighted Average Grant Date Fair Value      
Beginning balance (USD per share) $ 64.97    
Granted (USD per share) 53.15 $ 65.29 $ 55.40
Vested (USD per share) 65.83    
Forfeited (USD per share) 62.31    
Ending balance (USD per share) $ 60.25 $ 64.97  
Aggregate Intrinsic Value (in thousands)      
Beginning balance $ 110,615    
Vested 31,561    
Ending balance $ 90,799 $ 110,615  
Vested and expected to vest (in shares) 1,779,684    
Vested and expected to vest (USD per share) $ 60.25    
Vested and expected to vest, aggregate intrinsic value $ 90,799    
RSUs with Performance Conditions      
Number of RSUs      
Beginning balance (in shares) 154,361    
Granted (in shares) 25,205 0 0
Vested (in shares) (61,895)    
Forfeited (in shares) (9,799)    
Ending balance (in shares) 107,872 154,361  
Weighted Average Grant Date Fair Value      
Beginning balance (USD per share) $ 80.83    
Granted (USD per share) 49.97    
Vested (USD per share) 74.15    
Forfeited (USD per share) 85.35    
Ending balance (USD per share) $ 77.05 $ 80.83  
Aggregate Intrinsic Value (in thousands)      
Beginning balance $ 9,385    
Vested 3,329    
Ending balance $ 5,504 $ 9,385  
Vested and expected to vest (in shares) 55,872    
Vested and expected to vest (USD per share) $ 69.82    
Vested and expected to vest, aggregate intrinsic value $ 2,851    
v3.25.4
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Payment Arrangement, Expense $ 33,190,000 $ 41,242,000 $ 47,283,000
Employee Stock | 2015 ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares reserved for future grant (in shares) 1,831,595    
Fair market value purchase discount 90.00%    
Maximum number of shares participant may purchase, fair market value (not to exceed) $ 15,000    
Maximum number of shares participant may purchase as a percentage of base compensation (not to exceed) 10.00%    
Discount of the market value on the date of purchase (not to exceed) (percent) 10.00%    
Shares purchased by employees (in shares) 34,449 29,946 33,639
Share-based Payment Arrangement, Expense $ 200,000 $ 200,000 $ 200,000
Purchase period 6 months    
v3.25.4
Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 131,628 $ 122,513 $ 80,340
Net loss attributable to redeemable noncontrolling interests 946 1,603 703
Net income attributable to common stockholders 132,574 124,116 81,043
Add back total interest expense, net of tax, attributable to convertible senior notes 12,098 8,573 2,367
Net income attributable to common stockholders - diluted $ 144,672 $ 132,689 $ 83,410
Weighted average common shares outstanding — basic (in shares) 49,795,191 49,641,763 49,818,448
Dilutive effect of convertible senior notes, stock options and restricted stock units (in shares) 9,128,624 8,351,256 4,806,986
Weighted average common shares outstanding — diluted (in shares) 58,923,815 57,993,019 54,625,434
Net income attributable to common stockholders per share:      
Basic (in dollars per share) $ 2.66 $ 2.50 $ 1.63
Diluted (in dollars per share) $ 2.46 $ 2.29 $ 1.53
v3.25.4
Earnings Per Share - Anti-dilutive Securities (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (in shares) 774,004 579,678 626,976
Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (in shares) 11,300 1,700 255,325
v3.25.4
Earnings Per Share - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Feb. 10, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Interest expense and debt issuance cost $ 12,098 $ 8,573 $ 2,367  
Convertible Senior Notes due 2026        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Dilutive effect of convertible senior notes (in shares) 2,103,317 3,396,950 3,396,950  
Convertible Senior Notes due 2029        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Dilutive effect of convertible senior notes (in shares) 5,728,550 3,365,132    
OpenEye        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Percentage of business acquired 89.00%      
Noonlight        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Percentage of business acquired 99.00%      
CHeKT, Inc        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Percentage of business acquired 81.00%     81.00%
v3.25.4
Significant Service Providers and Distributors (Details) - Service Provider Concentration Risk - Revenue from Contract with Customer Benchmark
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
10 Largest Service Providers      
Concentration Risk [Line Items]      
Concentration risk percentage 45.00% 46.00% 50.00%
Minimum | Service Provider A      
Concentration Risk [Line Items]      
Concentration risk percentage 15.00% 15.00% 15.00%
Maximum | Service Provider A      
Concentration Risk [Line Items]      
Concentration risk percentage 20.00% 20.00% 20.00%
v3.25.4
Income Taxes - Components of Income before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 157,866 $ 138,111 $ 97,453
Foreign 8,740 3,563 372
Income before income taxes $ 166,606 $ 141,674 $ 97,825
v3.25.4
Income Taxes - Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current      
Federal $ (5,201) $ 40,131 $ 51,923
State 8,268 10,561 11,577
Foreign 4,579 3,098 1,715
Total Current 7,646 53,790 65,215
Deferred      
Federal 30,383 (29,307) (40,519)
State (440) (5,277) (6,986)
Foreign 31 88 (225)
Total Deferred 29,974 (34,496) (47,730)
Total $ 37,620 $ 19,294 $ 17,485
v3.25.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. Federal Statutory Tax Rate $ 34,987 $ 29,779 $ 20,543
State and Local Income Taxes, Net of Federal Income Tax Effect 6,249 4,587 3,654
Foreign Tax Effects 2,924 2,553 1,442
Effect on Changes in Tax Laws or Rates Enacted in Current Period 0 0 0
Effect of Cross-Border Tax Laws 1,017 (4,720) (4,288)
Foreign Derived Intangible Income 4 (4,844) (4,288)
Global Intangible Low-Taxed Income 1,013 124 0
Tax Credits (11,279) (14,236) (7,005)
Federal Research and Development Tax Credits (11,279) (14,236) (7,005)
Changes in Valuation Allowances 0 0 44
Nontaxable or Nondeductible Items 3,072 1,637 2,819
Changes in Unrecognized Tax Benefits 83 (320) 261
Other Adjustments 567 14 15
Total $ 37,620 $ 19,294 $ 17,485
Percentage      
U.S. Federal Statutory Tax Rate 21.00% 21.00% 21.00%
State and Local Income Taxes, Net of Federal Income Tax Effect 3.80% 3.20% 3.70%
Foreign tax rate differential 1.80% 1.80% 1.60%
Effect on Changes in Tax Laws or Rates Enacted in Current Period 0.00% 0.00% 0.00%
Effect of Cross-Border Tax Laws 0.60% (3.30%) (4.40%)
Foreign Derived Intangible Income 0.00% (3.40%) (4.40%)
Global Intangible Low-Taxed Income 0.60% 0.10% 0.00%
Tax Credits (6.70%) (10.00%) (7.20%)
Research and development tax credits (6.70%) (10.00%) (7.20%)
Valuation allowance 0.00% 0.00% 0.00%
Nontaxable or Nondeductible Items 1.80% 1.20% 2.90%
Changes in Unrecognized Tax Benefits 0.00% (0.30%) 0.30%
Other Adjustments 0.30% 0.00% 0.00%
Effective rate 22.60% 13.60% 17.90%
v3.25.4
Income Taxes - Schedule of Income Taxes Paid, Net of Refunds (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]        
Federal $ 600 $ 30,080 $ 52,686 $ 50,973
State   13,445 12,990 12,345
Foreign   1,862 2,535 1,259
Total   45,387 68,211 64,577
Virginia        
Operating Loss Carryforwards [Line Items]        
State   $ 6,570 $ 4,787 $ 0
v3.25.4
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets, non-current      
Provision for credit losses on accounts receivable $ 1,873 $ 1,459  
Depreciation 316 292  
Accrued expenses 8,473 6,615  
Deferred revenue 3,451 2,997  
Operating lease liabilities 18,849 18,149  
Stock-based compensation 16,799 20,060  
Acquisition costs 1,803 1,852  
Inventory reserve 679 566  
Net operating losses 4,850 1,610  
Tax credits 4,470 4,334  
Capitalized research and development expenditures 113,933 135,619  
Capped call premium 10,661 13,416  
Other 2,123 3,430  
Total deferred tax assets, non-current prior to valuation allowance 188,280 210,399  
Valuation allowance (5,632) (5,012) $ (3,800)
Total deferred tax assets, non-current, net of valuation allowance 182,648 205,387  
Deferred tax liabilities, non-current      
Intangible assets and prepaid patent licenses (7,273) (2,574)  
Operating lease right-of-use assets (13,002) (13,199)  
Depreciation (7,787) (5,953)  
Sales commissions (1,858) (1,706)  
Equity investments (27) (161)  
Other deferred tax liabilities (446) (510)  
Total deferred tax liabilities, non-current (30,393) (24,103)  
Net deferred tax assets, non-current $ 152,255 $ 181,284  
v3.25.4
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 9,124 $ 9,063 $ 7,596
Additions based on tax positions of the current year 1,693 1,978 1,589
Additions based on tax positions of prior year 289 617 204
Decreases based on tax positions of prior year (57) (2) (205)
Decreases for tax positions taken in the prior year due to settlement 0 (2,220) 0
Decreases due to lapse of applicable statute of limitations (1,257) (312) (121)
Ending balance $ 9,792 $ 9,124 $ 9,063
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]          
Federal income tax benefit, research and development     $ 47,900    
Decrease in income taxes payable     47,900    
Excess federal research and development tax credit     $ 5,800    
Effective Tax Rate     22.60% 13.60% 17.90%
Valuation allowance     $ 5,632 $ 5,012 $ 3,800
Unrecognized tax benefits that would impact the effective tax rate     9,800 9,100  
Accrued interest and penalties related to unrecognized tax benefits     1,200 900  
Federal $ 600   30,080 52,686 50,973
Income tax benefit, prior year taxes   $ 1,700      
U.S.          
Operating Loss Carryforwards [Line Items]          
Operating loss carryforwards     16,100    
State          
Operating Loss Carryforwards [Line Items]          
Operating loss carryforwards     22,300    
Research Tax Credit Carryforward          
Operating Loss Carryforwards [Line Items]          
Additions to unrecognized tax benefit     700 $ 100 $ 1,500
Research Tax Credit Carryforward | U.S.          
Operating Loss Carryforwards [Line Items]          
Tax credit carryforwards     100    
Research Tax Credit Carryforward | State          
Operating Loss Carryforwards [Line Items]          
Tax credit carryforwards     $ 5,200    
v3.25.4
Segment Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 2    
Total revenue $ 1,011,187,000 $ 939,827,000 $ 881,682,000
Alarm.com | Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue 919,650,000 870,587,000 824,451,000
Additions to property and equipment 16,200,000 10,000,000.0 7,400,000
Alarm.com | Software license revenue | Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue 17,700,000 20,300,000 23,200,000
Other | Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue 95,735,000 72,664,000 61,028,000
Additions to property and equipment 100,000 100,000 100,000
Other | Software license revenue | Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue $ 0 $ 0 $ 0
Revenue | Segment Concentration Risk | Alarm.com      
Segment Reporting Information [Line Items]      
Concentration risk percentage 91.00% 92.00% 93.00%
v3.25.4
Segment Information - Schedule of Reportable Segment Operational Data (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total revenue $ 1,011,187 $ 939,827 $ 881,682
Total cost of revenue [1] 342,295 326,149 325,159
Selling and marketing expense 123,788 111,242 100,226
General and administrative expense 110,418 108,879 112,930
Research and development 270,229 255,878 245,114
Amortization and depreciation 30,819 29,131 31,424
Total operating expenses 535,254 505,130 489,694
Operating income 133,638 108,548 66,829
Total assets 2,136,591 2,038,208  
Interest expense (17,294) (11,426) (3,429)
Interest income 45,617 47,359 29,801
Other income / (expense), net 4,645 (2,807) 4,624
Income before income taxes 166,606 141,674 97,825
SaaS and license revenue      
Segment Reporting Information [Line Items]      
Total revenue 689,397 631,198 569,200
Total cost of revenue [1] 96,200 89,512 85,898
Hardware and other revenue      
Segment Reporting Information [Line Items]      
Total revenue 321,790 308,629 312,482
Total cost of revenue [1] 246,095 236,637 239,261
Operating Segments | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue 919,650 870,587 824,451
Total cost of revenue 309,547 303,080 309,299
Selling and marketing expense 98,039 88,899 82,672
General and administrative expense 102,647 101,401 107,475
Research and development 238,925 227,559 220,106
Amortization and depreciation 28,813 28,107 30,337
Total operating expenses 468,424 445,966 440,590
Operating income 141,679 121,541 74,562
Total assets 2,181,210 2,081,214  
Operating Segments | Alarm.com | SaaS and license revenue      
Segment Reporting Information [Line Items]      
Total revenue 605,261 564,513 514,673
Total cost of revenue 69,986 68,666 71,639
Operating Segments | Alarm.com | Hardware and other revenue      
Segment Reporting Information [Line Items]      
Total revenue 314,389 306,074 309,778
Total cost of revenue 239,561 234,414 237,660
Operating Segments | Other      
Segment Reporting Information [Line Items]      
Total revenue 95,735 72,664 61,028
Total cost of revenue 37,085 26,223 23,612
Selling and marketing expense 25,749 22,343 17,554
General and administrative expense 7,771 7,478 5,935
Research and development 31,304 28,319 25,008
Amortization and depreciation 2,006 1,024 1,087
Total operating expenses 66,830 59,164 49,584
Operating income (8,180) (12,723) (12,168)
Total assets 190,095 85,468  
Operating Segments | Other | SaaS and license revenue      
Segment Reporting Information [Line Items]      
Total revenue 84,136 66,685 54,527
Total cost of revenue 26,214 20,809 17,852
Operating Segments | Other | Hardware and other revenue      
Segment Reporting Information [Line Items]      
Total revenue 11,599 5,979 6,501
Total cost of revenue 10,871 5,414 5,760
Intersegment Eliminations | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue (2,928) (2,769) (3,201)
Total cost of revenue (2,517) (2,301) (6,738)
Selling and marketing expense 0 0 0
General and administrative expense 0 0 (480)
Research and development 0 0 0
Amortization and depreciation 0 0 0
Total operating expenses 0 0 (480)
Operating income (411) (468) 4,017
Total assets (234,681) (128,465)  
Intersegment Eliminations | Alarm.com | SaaS and license revenue      
Segment Reporting Information [Line Items]      
Total revenue 0 0 0
Total cost of revenue 354 329 (2,967)
Intersegment Eliminations | Alarm.com | Hardware and other revenue      
Segment Reporting Information [Line Items]      
Total revenue (2,928) (2,769) (3,201)
Total cost of revenue (2,871) (2,630) (3,771)
Intersegment Eliminations | Other      
Segment Reporting Information [Line Items]      
Total revenue (1,270) (655) (596)
Total cost of revenue (1,820) (853) (1,014)
Selling and marketing expense 0 0 0
General and administrative expense 0 0 0
Research and development 0 0 0
Amortization and depreciation 0 0 0
Total operating expenses 0 0 0
Operating income 550 198 418
Total assets (33) (9)  
Intersegment Eliminations | Other | SaaS and license revenue      
Segment Reporting Information [Line Items]      
Total revenue 0 0 0
Total cost of revenue (354) (292) (626)
Intersegment Eliminations | Other | Hardware and other revenue      
Segment Reporting Information [Line Items]      
Total revenue (1,270) (655) (596)
Total cost of revenue $ (1,466) $ (561) $ (388)
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.4
Subsequent Event (Details)
$ in Thousands
Jan. 14, 2026
USD ($)
Convertible Senior Notes due 2026 | Senior Notes | Subsequent Event  
Subsequent Event [Line Items]  
Repayments of secured debt $ 500,000
v3.25.4
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Allowance for credit losses on accounts receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year $ 3,870 $ 3,864 $ 2,835
Additions Charged Against Revenue 0 0 0
Additions Charged to Other Accounts 2,155 950 1,508
Deductions (854) (944) (479)
Balance at End of Year 5,171 3,870 3,864
Allowance for product returns      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 2,448 2,279 1,551
Additions Charged Against Revenue 3,071 3,187 4,399
Additions Charged to Other Accounts 0 0 0
Deductions (3,379) (3,018) (3,671)
Balance at End of Year 2,140 2,448 2,279
Allowance for credit losses on notes receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 1 5 2
Additions Charged Against Revenue 0 0 0
Additions Charged to Other Accounts 748 3,996 3
Deductions 0 (4,000) 0
Balance at End of Year 749 1 5
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 5,012 3,754 2,591
Additions Charged Against Revenue 0 0 0
Additions Charged to Other Accounts 1,529 2,642 2,204
Deductions (909) (1,384) (1,041)
Balance at End of Year $ 5,632 $ 5,012 $ 3,754