Is Alarm.com Holdings, Inc. (NASDAQ:ALRM) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Alarm.com Holdings, Inc. at current levels.
A boring, profitable cash machine sitting on an AI video upgrade cycle the market is treating like a utility.
Where ALRM is headed
Alarm.com is the kind of business that gets ignored precisely because it works. 9 million-plus subscribers, 90%+ recurring SaaS revenue from monthly monitoring fees, mid-60s gross margins, and a service provider channel of 11,000+ installers who do the customer acquisition for them. The stock sits at $45 because the residential security pulse has slowed and the bears decided this is a no-growth annuity. They're looking at the wrong product line. The growth engine over the next 24 months is OpenEye and the broader commercial video portfolio, which is selling AI-powered video analytics into mid-market commercial customers (schools, retail chains, multi-site operators) where ADT and the legacy video surveillance vendors have been asleep for a decade.
Read the full Compass Direction on ALRM
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $45.47).
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Frequently asked questions
Is Alarm.com Holdings, Inc. (NASDAQ:ALRM) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Alarm.com Holdings, Inc. at current levels. A boring, profitable cash machine sitting on an AI video upgrade cycle the market is treating like a utility.
What is ALRM's Compass Score?
Alarm.com Holdings, Inc. scores 77/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.
What is the price target for ALRM?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the ALRM page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.