v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
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 87% and 88% of our revenue, net of intersegment eliminations, for the three and six months ended June 30, 2026, respectively, as compared to 92% for the same periods in the prior year. 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):
Three Months Ended June 30, 2026
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$159,781 $28,997 $— $— $188,778 
Hardware and other revenue
83,314 6,989 (951)(396)88,956 
Total revenue
243,095 35,986 (951)(396)277,734 
Cost of SaaS and license revenue18,282 11,635 99 (99)29,917 
Cost of hardware and other revenue60,695 6,422 (978)(403)65,736 
Total cost of revenue78,977 18,057 (879)(502)95,653 
Selling and marketing expense24,886 8,093 — — 32,979 
General and administrative expense33,048 3,598 — — 36,646 
Research and development expense60,222 10,786 — — 71,008 
Amortization and depreciation expense7,272 1,692 — — 8,964 
Total operating expenses125,428 24,169 — — 149,597 
Operating income / (loss)
$38,690 $(6,240)$(72)$106 $32,484 
Reconciliation of operating income to income before income taxes
Operating income$32,484 
Interest expense(3,543)
Interest income4,491 
Other expense, net(2,336)
Income before income taxes$31,096 
Three Months Ended June 30, 2025
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$150,997 $18,996 $— $— $169,993 
Hardware and other revenue
82,873 2,641 (663)(536)84,315 
Total revenue
233,870 21,637 (663)(536)254,308 
Cost of SaaS and license revenue17,489 6,164 87 (87)23,653 
Cost of hardware and other revenue62,483 2,417 (551)(540)63,809 
Total cost of revenue79,972 8,581 (464)(627)87,462 
Selling and marketing expense25,035 6,101 — — 31,136 
General and administrative expense25,345 1,739 — — 27,084 
Research and development expense61,257 7,813 — — 69,070 
Amortization and depreciation expense7,239 295 — — 7,534 
Total operating expenses118,876 15,948 — — 134,824 
Operating income / (loss)
$35,022 $(2,892)$(199)$91 $32,022 
Reconciliation of operating income to income before income taxes
Operating income$32,022 
Interest expense(4,321)
Interest income11,808 
Other expense, net(175)
Income before income taxes$39,334 
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
Total assets as of June 30, 2026
$1,711,476 $181,724 $(236,112)$(110)$1,656,978 
Total assets as of December 31, 2025
2,181,210 190,095 (234,681)(33)2,136,591 
Six Months Ended June 30, 2026
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$317,173 $53,129 $— $— $370,302 
Hardware and other revenue164,338 11,007 (1,977)(743)172,625 
Total revenue481,511 64,136 (1,977)(743)542,927 
Cost of SaaS and license revenue36,441 21,371 195 (195)57,812 
Cost of hardware and other revenue121,604 9,564 (2,032)(784)128,352 
Total cost of revenue158,045 30,935 (1,837)(979)186,164 
Selling and marketing expense51,541 15,872 — — 67,413 
General and administrative expense58,614 5,486 — — 64,100 
Research and development expense121,537 21,530 — — 143,067 
Amortization and depreciation expense14,684 3,372 — — 18,056 
Total operating expenses246,376 46,260 — — 292,636 
Operating income / (loss)$77,090 $(13,059)$(140)$236 $64,127 
Reconciliation of operating income to income before income taxes
Operating income$64,127 
Interest expense(7,215)
Interest income9,422 
Other income / (expense), net(6,245)
Income before income taxes$60,089 
Six Months Ended June 30, 2025
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$298,645 $35,148 $— $— $333,793 
Hardware and other revenue156,922 4,531 (1,336)(780)159,337 
Total revenue455,567 39,679 (1,336)(780)493,130 
Cost of SaaS and license revenue34,272 10,949 171 (171)45,221 
Cost of hardware and other revenue118,369 4,183 (1,210)(867)120,475 
Total cost of revenue152,641 15,132 (1,039)(1,038)165,696 
Selling and marketing expense47,502 12,183 — — 59,685 
General and administrative expense50,181 3,904 — — 54,085 
Research and development expense121,941 15,496 — — 137,437 
Amortization and depreciation expense13,967 591 — — 14,558 
Total operating expenses233,591 32,174 — — 265,765 
Operating income / (loss)$69,335 $(7,627)$(297)$258 $61,669 
Reconciliation of operating income to income before income taxes
Operating income$61,669 
Interest expense(8,635)
Interest income24,179 
Other income / (expense), net(2,835)
Income before income taxes$74,378 

Cash additions to property and equipment for our segments are as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Alarm.com$4,623 $4,544 $5,368 $10,656 
Other224 8 391 11 

We derived substantially all revenue from North America for the three and six months ended June 30, 2026 and 2025. Substantially all of our long-lived assets were in North America as of June 30, 2026 and December 31, 2025.