Q2 2026 Alarm.com Holdings Inc Earnings Call Transcript
Key Points
- SaaS and license revenue grew 11% year-over-year to $188.8 million, exceeding guidance by $3.2 million.
- Adjusted EBITDA grew 15.7% year-over-year to $57.7 million, with margin expansion of 115 basis points.
- Commercial and EnergyHub initiatives collectively grew more than 30% year-over-year, contributing to diversified growth.
- International business surpassed 1 million active subscriber accounts, a key milestone for global expansion.
- Launched new Fire Communicator product, addressing a large addressable market of 4-5 million fire panels in the US and Canada.
- GAAP net income declined to $24.2 million from $34.6 million a year ago, partly due to lower interest income after retiring convertible notes.
- Third-quarter SaaS and license revenue growth is expected to slow to approximately 8.3% year-over-year, down from 11% in Q2.
- Hardware and other revenue growth was modest at 5.5% year-over-year, with hardware gross margins lower for the new Fire Communicator.
- Free cash flow in Q2 was affected by working capital timing, though full-year conversion is still expected at 90%.
- The Fire Communicator is a new product with uncertain adoption, and management expects it will take time to scale and size up steady-state demand.
Good day, and thank you for standing by. Welcome to the Alarm.com second quarter 2026 earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Matthew Zartman. Please go ahead.
Thank you, operator. Good afternoon, everyone, and welcome to Alarm.com's second quarter 2026 earnings conference call. Please note that this call is being recorded. Joining us today are Steve Trundle, our CEO; and Kevin Bradley, our CFO.
During today's call, we will be making forward-looking statements, which are predictions, projections, estimates and/or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.
We refer you to the risk factors discussed in our Form 8
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