Alarm.com HoldingsALRM +3.25%83 EBITDA Margin % is 17.15% as of Mar. 2026, which is 7% above its 10-year median of 16.02. 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. Among 2,818 Software companies, Alarm.com Holdings ranks better than 80.02% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Alarm.com Holdings's EBITDA for the
three
months ended in Mar. 2026 was $45 Mil. Alarm.com Holdings's Revenue for the
three
months ended in Mar. 2026 was $265 Mil. Therefore, Alarm.com Holdings's EBITDA margin for the quarter that ended in Mar. 2026 was 17.15%.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Alarm.com Holdings EBITDA Margin % Related Terms
Alarm.com Holdings EBITDA Margin % Historical Data
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The historical data trend for Alarm.com Holdings's EBITDA Margin % 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.
ALRM vs GRND, VERX, PLUS: EBITDA Margin % Comparison
For the Software - Application subindustry, Alarm.com Holdings's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's EBITDA Margin % falls into.
* 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 (ALRM) has a EBITDA Margin % of 17.15% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Alarm.com Holdings and its competitors. This is near median its historical median of 16.02. Over the past decade, Alarm.com Holdings' EBITDA Margin % has ranged from 8.37 to 22.76. According to the industry distribution chart, Alarm.com Holdings ranks #563 out of 2818 companies in the Software industry, placing it in the top 20%.
Is Alarm.com Holdings' EBITDA Margin % too high?
Alarm.com Holdings' current EBITDA Margin % of 17.15% is near median its 10-year median of 16.02. Over the past 10 years, this metric has ranged from a low of 8.37 to a high of 22.76. The Software industry median EBITDA Margin % is 8.07. Alarm.com Holdings' value of 17.15% is 112.5% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #563 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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' EBITDA Margin % compare to GRND and VERX?
According to the Software industry distribution chart, Alarm.com Holdings ranks #563 out of 2818 companies for EBITDA Margin %. This places Alarm.com Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.07. Alarm.com Holdings' value of 17.15% is 112.5% above this benchmark. Historically, Alarm.com Holdings' own EBITDA Margin % has ranged from 8.37 to 22.76 over the past decade. While the company's 10-year median is 16.02 vs. the industry median of 8.07, Alarm.com Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current EBITDA Margin % of 17.15% is 112.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current EBITDA Margin % is 17.15%, which is near median its own 10-year median of 16.02. 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 EBITDA Margin % is 17.15%, which is near median its 10-year median of 16.02 and 112.5% above the Software industry median of 8.07. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current EBITDA Margin % is 17.15% 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:
EBITDA Margin %: 17.15% (near median its 10-year median of 16.02)
GF Value™: $64.87 vs. price of $44.47 (31.4% below fair value)
Industry Position: 112.5% above the Software median (#563 of 2818)
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 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
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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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