Alarm.com Holdings, Inc.
ALRM Technology Software Application
Alarm.com Holdings, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.0 billion, up 7.59% from fiscal 2024. In the quarter to June 2026, revenue grew 9.21%, EPS fell 29.0%, free cash flow grew 106.1% and total debt fell 50.2%, each against the same quarter a year earlier. Revenue growth for ten consecutive years; insiders bought in the last twelve months.
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Alarm.com Holdings, Inc. (ALRM) Altman Z-score
Alarm.com Holdings, Inc.'s Altman Z-score for fiscal 2025 is 2.55, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.55 | (0.50) |
| FY2024 | 3.05 | (1.20) |
| FY2023 | 4.25 | 0.61 |
| FY2022 | 3.64 | (2.14) |
| FY2021 | 5.78 | (7.47) |
| FY2020 | 13.24 | 5.53 |
| FY2019 | 7.71 | (2.62) |
| FY2018 | 10.33 | 1.45 |
| FY2017 | 8.88 | (3.27) |
| FY2016 | 12.14 | 6.74 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.29 | — | 0.34 | |
| Retained earnings / total assets | 0.24 | — | 0.34 | |
| EBIT / total assets | 0.06 | — | 0.21 | |
| Market value of equity / total liabilities | 1.97 | — | 1.18 | |
| Sales / total assets | 0.47 | — | 0.47 | |
| Altman Z-score | Grey zone | 2.55 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.78 | ||
Z and Z″ put Alarm.com Holdings, Inc. in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| SPSC SPS Commerce, Inc. compare | 12.0× |
| AGYS Agilysys, Inc. compare | 9.4× |
| PTRN Pattern Group Inc. compare | 5.5× |
| GRND Grindr Inc. compare | 4.7× |
| PLUS ePlus inc. compare | 4.5× |
| VIA Via Transportation Inc. compare | 4.0× |
| ADEA Adeia Inc. compare | 3.4× |
| ALRM Alarm.com Holdings, Inc. | 2.5× |
| KC Kingsoft Cloud Holdings Limited Sponsored ADR compare | 0.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets