Alarm.com Reports Q4 Free Cash Flow of $35.1M and 8.8% SaaS Growth
Alarm.com delivered Q4 non-GAAP free cash flow of $35.1 million and full-year free cash flow of $137 million, while adjusted EBITDA rose 18.3% year over year to $54.9 million. Fourth-quarter SaaS and license revenue reached $180 million, up 8.8%, contributing to over $1 billion in annual total revenue.
1. Q4 and Full-Year Financial Results
In Q4 of fiscal 2025, Alarm.com generated non-GAAP free cash flow of $35.1 million and GAAP net income of $34.7 million, or $0.66 per diluted share. Adjusted EBITDA increased 18.3% to $54.9 million, while full-year free cash flow totaled $137 million and annual total revenue surpassed $1 billion.
2. Revenue Model and ARPU Expansion
SaaS and license revenue climbed 8.8% year over year to $180 million in the quarter, driven by a device-based pricing model that depends on connected installations rather than per-user seats. Hardware gross profit rose 13.4% to $19.1 million, offsetting roughly 55% of sales and marketing costs in Q4 and fueling ARPU expansion through video analytics and monitoring features.
3. Growth in Commercial, EnergyHub, and AI Initiatives
Commercial security and EnergyHub segments grew about 25% each, with EnergyHub bolstered by the Resideo Grid Services acquisition and network-effect benefits across utility programs. Management highlighted ongoing AI integration for productivity and product enhancements, including large language models for video data search and advanced deterrence features in new camera hardware.