Yaas to SaaS: Alarm.com seizes software momentum

TYSONS, Va. — Alarm.com reported third-quarter revenue for 2025 that exceeded company expectations, driven by strong performance in its EnergyHub platform and software-as-a-service (SaaS) offerings. These areas helped boost recurring subscription sales and offset weaker hardware results. 

The company said total revenue rose 6.6%, while SaaS and license revenue climbed 10.1%, both from a year earlier.  

EnergyHub’s strategic impact on SaaS 

The company’s EnergyHub platform, which helps distribute energy resources across smart thermostats, residential batteries and other connected devices, helped to drive SaaS revenue growth in the 20% to 25% year-over-year range, and accounted for 30% of total SaaS revenue this quarter. 

“I want to highlight Energy Hub's progress with its platform strategy, which is enabling higher value services for its utility clients and reinforcing its competitive advantage and leading market share in the North American residential market,” said CEO Steve Trundle. 

Also pitching in to drive SaaS revenue growth – the Commercial and International businesses. 

Commercial has momentum 

Over the past year, Alarm.com has seen a considerable increase in commercial video account creation, increasing the company’s commercial access control subscriber base by roughly 30%, Trundle said. 

Reflecting on Alarm.com’s annual partner summit in October, he said “(our) partners expressed nice enthusiasm for our overall roadmap and particularly for our new residential and commercial video products, including our upcoming battery cameras.” 

Outlook on SaaS and hardware 

Trundle was quick to note that, while there are some video products coming that could help drive increased results for hardware, the continued expansion of SaaS revenues is expected to remain Alarm.com’s largest contributor to margin growth in the near future. 

Alarm.com Q3 2025 financial highlights vs 2024 

• SaaS and license revenue increased 10.1% to $175.4 million, compared to $159.3 million. 
• Total revenue increased 6.6% to $256.4 million, compared to $240.5 million. 
• GAAP net income was $35.1 million, compared to $36.5 million. GAAP net income attributable to common stockholders was $35.3 million, or $0.65 per diluted share, compared to $36.7 million, or $0.67 per diluted share. 
• Non-GAAP adjusted EBITDA(*) increased 18.4% to $59.2 million, compared to $50.0 million. 
• Non-GAAP adjusted net income attributable to common stockholders(*) increased 20.6% to $42.4 million, or $0.76 per diluted share, compared to $35.2 million, or $0.62 per diluted share.