XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.25.3

Investments in Unconsolidated Entities | 9 Months Ended
--- | ---
Sep. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Investments in Safe Haven Security Services, LLC, or Safe Haven, and All Access Holdings, LLC, or All Access On May 30, 2025, we paid $119.3 million in cash to purchase 32.5% of the outstanding shares of Safe Haven, after deducting $6.3 million related to an agreed holdback provision that is expected to be paid during the second quarter of 2026. On June 6, 2025, we paid $19.2 million in cash to purchase 32.5% of the outstanding shares of All Access, after deducting $1.0 million related to an agreed holdback provision that is expected to be paid during the second quarter of 2026. After consummation of these transactions, All Access and Safe Haven were under common control. We do not have a controlling financial interest in Safe Haven or All Access, but based on the legal form of Safe Haven and All Access, our level of ownership and our extent of influence, we concluded that the equity investments in Safe Haven and All Access, which are included in the Alarm.com segment, do not meet the criteria for consolidation and will be accounted for under the equity method of accounting. As of September 30, 2025, the carrying value of our equity investments in Safe Haven and All Access exceeded our share of Safe Haven's and All Access' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill. Trade names and customer relationships are definite-lived intangible assets and are amortized on an attribution method based on the projected discounted cash flows over useful lives ranging from nine years to 14 years. We are not obligated to fund losses of Safe Haven or All Access, when applicable. Investment in Safe Streets USA, LLC, or Safe Streets On April 28, 2025, we paid $29.1 million in cash to purchase 24.7% of the outstanding shares of Safe Streets. We do not have a controlling financial interest in Safe Streets, but based on the legal form of Safe Streets, our level of ownership and our extent of influence, we concluded that this equity investment in Safe Streets, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the equity method of accounting. As of September 30, 2025, the carrying value of our equity investment in Safe Streets exceeded our share of Safe Streets' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill. Trade names and customer relationships are definite-lived intangible assets and are amortized on an attribution method based on the projected discounted cash flows over their useful lives of 10 years and 11 years, respectively. We are not obligated to fund losses of Safe Streets, when applicable. Investment in a Hardware Supplier In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers. In July 2019, we converted the outstanding notes receivable balance of $5.6 million into 9,520,832 shares of Series B preferred stock in the hardware supplier. We concluded that the $5.6 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for using the measurement alternative. Under the alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of September 30, 2025 and December 31, 2024, our investment in the hardware supplier was $5.6 million. Investments in Technology Partners In February 2021, we paid $5.0 million in cash to purchase 1,000,000 shares of Series B-2 Preferred Stock from a technology partner as part of a financing round that included other investors. The $5.0 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of September 30, 2025 and December 31, 2024, our investment in the technology partner was $5.7 million. In December 2022, we paid $5.1 million in cash to another technology partner to purchase 4,231,717 shares of its Series A Preferred Stock. The $5.1 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. As of September 30, 2025 and December 31, 2024, our investment in the technology partner was $5.1 million. In December 2023, we paid $1.5 million to another technology partner as part of a Simple Agreement for Future Equity, or SAFE. We paid an additional $1.5 million during both May 2024 and December 2024 to the same technology partner via a SAFE for a total investment of $4.5 million. On June 11, 2025, the $4.5 million SAFE was converted into shares of Series B preferred stock representing 25.9% of the outstanding shares of the technology partner. Our preferred stock provides us with a liquidation preference that is considered substantive. Accordingly, our equity ownership interest is not considered in-substance common stock. We concluded that the equity investment in the technology partner, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of September 30, 2025 and December 31, 2024, our investment in the technology partner was $4.5 million. Summary of Investments in Unconsolidated Entities Our investments in unconsolidated entities are as follows (in thousands):
|  |  | September 30, 2025 |  | December 31, 2024
| Ownership Percentage |  | Carrying Value |  | Excess Carrying Value of Investment Over Proportionate Share of Net Assets |  | Carrying Value |  | Excess Carrying Value of Investment Over Proportionate Share of Net Assets
Safe Haven and All Access | 32.5 | % |  | $ | 143,772 |  |  | $ | 145,279 |  |  | $ | — |  |  | $ | — |
Safe Streets | 24.7 | % |  | 30,744 |  |  | 31,030 |  |  | — |  |  | — |
Other unconsolidated entities |  |  | 23,180 |  |  | 716 |  |  | 17,170 |  |  | 733 |
Total |  |  | $ | 197,696 |  |  | $ | 177,025 |  |  | $ | 17,170 |  |  | $ | 733 |
Equity method income from our investments in unconsolidated entities are as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Income from equity method investments, net | $ | 2,793 |  |  | $ | — |  |  | $ | 3,109 |  |  | $ | — |
Other related party transactions and balances outstanding with our equity method investees for activity subsequent to our investments are as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Revenue from equity method investees | $ | 7,230 |  |  | $ | — |  |  | $ | 9,928 |  |  | $ | — |
Interest income from equity method investees | 405 |  |  | — |  |  | 693 |  |  | — |
Distributions received from equity method investees | 4,014 |  |  | — |  |  | 4,014 |  |  | — |
| September 30, 2025 |  | December 31, 2024
Outstanding principal from loans to equity method investees | $ | 21,609 |  |  | $ | 145 |
Interest receivable from equity method investees | 389 |  |  | — |
Accounts receivable from equity method investees | 1,175 |  |  | 82 |
Total amounts receivable from equity method investees | $ | 23,173 |  |  | $ | 227 |

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration