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) Beneish M-score
Alarm.com Holdings, Inc.'s Beneish M-score for fiscal 2025 is −2.19; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.19 | 0.67 |
| FY2024 | −2.86 | (0.24) |
| FY2023 | −2.62 | (0.41) |
| FY2022 | −2.21 | 0.60 |
| FY2021 | −2.81 | (0.16) |
| FY2020 | −2.65 | (0.87) |
| FY2019 | −1.78 | 1.04 |
| FY2018 | −2.81 | (0.63) |
| FY2017 | −2.18 | 0.28 |
| FY2016 | −2.46 | 0.20 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.05 | — | 0.96 | |
| Gross margin index | 0.99 | — | 0.52 | |
| Asset quality index | 1.55 | — | 0.62 | |
| Sales growth index | 1.08 | — | 0.96 | |
| Depreciation index | 0.96 | — | 0.11 | |
| SG&A index | 0.99 | — | −0.17 | |
| Total accruals to total assets | (0.01) | — | −0.05 | |
| Leverage index | 0.94 | — | −0.31 | |
| Beneish M-score | Elevated | −2.19 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| KC Kingsoft Cloud Holdings Limited Sponsored ADR compare | −3.1× |
| VIA Via Transportation Inc. compare | −2.7× |
| GRND Grindr Inc. compare | −2.7× |
| ADEA Adeia Inc. compare | −2.6× |
| SPSC SPS Commerce, Inc. compare | −2.5× |
| AGYS Agilysys, Inc. compare | −2.5× |
| PTRN Pattern Group Inc. compare | −2.3× |
| ALRM Alarm.com Holdings, Inc. | −2.2× |
| PLUS ePlus inc. compare | −1.6× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI