ALRM (Alarm.com Holdings) EBIT: $177 Mil (TTM As of Mar. 2026)


ALRM Alarm.com Holdings Inc ALRM
83 GF Score
Price $44.47
GF Value $64.87
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Alarm.com Holdings EBIT?

Alarm.com Holdings ALRM +3.25% 83 EBIT is $177 Mil as of Mar. 2026. GuruFocus rates ALRM with a GF Score™ of 83/100 and a GF Value™ of $64.87 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Alarm.com Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $33 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $177 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Alarm.com Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 8.00%. Alarm.com Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 47.93%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.66%.

Alarm.com Holdings  (NAS:ALRM) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Alarm.com Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=126.572 * ( 1 - 20.2% )/( (1451.875 + 1073.309)/ 2 )
=101.004456/1262.592
=8.00 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2136.591 - 75.345 - ( 960.584 - max(0, 663.14 - 1272.511+960.584))
=1451.875

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1643.637 - 72.879 - ( 497.449 - max(0, 155.255 - 800.994+497.449))
=1073.309

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Alarm.com Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=130.66/( ( (117.435 + max(157.178, 0)) + (114.699 + max(155.914, 0)) )/ 2 )
=130.66/( ( 274.613 + 270.613 )/ 2 )
=130.66/272.613
=47.93 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(141.852 + 94.429 + 75.646) - (75.345 + 16.428 + 62.976)
=157.178

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(141.221 + 95.132 + 67.192) - (72.879 + 18.088 + 56.664)
=155.914

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=177.232/2312.770
=7.66 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Alarm.com Holdings EBIT Related Terms

Alarm.com Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Alarm.com Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Alarm.com Holdings EBIT Chart

Alarm.com Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.03 59.74 101.25 153.10 183.90

Alarm.com Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.36 43.68 51.83 49.05 32.67

ALRM vs GRND, VERX, PLUS: EBIT Comparison

For the Software - Application subindustry, Alarm.com Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Alarm.com Holdings EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Alarm.com Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's EV-to-EBIT falls into.


ALRM
83GF Score
Alarm.com Holdings Inc ALRM
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Alarm.com Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $177 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $177 Mil mean?
Alarm.com Holdings (ALRM) has a EBIT of $177 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Alarm.com Holdings.
Is Alarm.com Holdings' EBIT too high?
Alarm.com Holdings' current EBIT is $177 Mil. Overall, Alarm.com Holdings has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' EBIT compare to GRND and VERX?
Alarm.com Holdings' EBIT of $177 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Alarm.com Holdings. Alarm.com Holdings's current EBIT is $177 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alarm.com Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alarm.com Holdings (ALRM) is currently considered Significantly Undervalued. The stock's GF Value™ is $64.87, compared to a current price of $44.47 — trading 31.4% below its estimated fair value. The current EBIT is $177 Mil. Alarm.com Holdings' overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current EBIT is $177 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Alarm.com Holdings (ALRM) Overvalued in 2026?

Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued. The current stock price of $44.47 is trading 31.4% below its estimated GF Value™ of $64.87. GuruFocus considers Alarm.com Holdings to be Significantly Undervalued.

Key valuation signals for ALRM:

  • EBIT: $177 Mil
  • GF Value™: $64.87 vs. price of $44.47 (31.4% below fair value)
  • GF Score™: 83/100 with 2 warning signs

No single metric tells the full story. See the ALRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Alarm.com Holdings Business Description

Other Exchanges 0HC2:UK3RL:Germany
Address 8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
Alarm.com Holdings Inc has a cloud-based platform that offers an expansive suite of IoT solutions addressing world-wide opportunities in the residential, multi-family, small business and enterprise commercial markets. It has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected device.
83GF Score

Get the complete analysis for ALRM

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$44.47
Price
$64.87
GF Value