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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information We have two reportable segments: •Alarm.com segment •Other segment Our chief operating decision maker is our chief executive officer. Management determined the operational data used by the chief operating decision maker is that of the two reportable segments. Management bases strategic goals and decisions on these segments and the data presented below is used to measure financial results. Our Alarm.com segment represents our cloud-based platform and licenses and services on our non-hosted software platform for the intelligently connected property and related solutions that contributed 90% and 91% of our revenue, net of intersegment eliminations, for the three and nine months ended September 30, 2025, respectively, as compared to 92% and 93% for the same periods in the prior year. Our Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets. Inter-segment revenue includes sales of hardware between our segments. Management evaluates the performance of its segments and allocates resources to them based on operating income / (loss) as compared to prior periods and current performance levels. The reportable segment operational data is presented in the tables below (in thousands):
| Three Months Ended September 30, 2025
| Alarm.com |  | Other |  | Intersegment Alarm.com |  | Intersegment Other |  | Total
SaaS and license revenue | $ | 153,289 |  |  | $ | 22,083 |  |  | $ | — |  |  | $ | — |  |  | $ | 175,372 |
Hardware and other revenue | 78,298 |  |  | 3,771 |  |  | (810) |  |  | (231) |  |  | 81,028 |
Total revenue | 231,587 |  |  | 25,854 |  |  | (810) |  |  | (231) |  |  | 256,400 |
Cost of SaaS and license revenue | 17,715 |  |  | 6,518 |  |  | 90 |  |  | (90) |  |  | 24,233 |
Cost of hardware and other revenue | 61,002 |  |  | 3,489 |  |  | (870) |  |  | (292) |  |  | 63,329 |
Total cost of revenue | 78,717 |  |  | 10,007 |  |  | (780) |  |  | (382) |  |  | 87,562 |
Selling and marketing expense | 23,266 |  |  | 6,232 |  |  | — |  |  | — |  |  | 29,498 |
General and administrative expense | 26,438 |  |  | 1,451 |  |  | — |  |  | — |  |  | 27,889 |
Research and development expense | 59,347 |  |  | 7,290 |  |  | — |  |  | — |  |  | 66,637 |
Amortization and depreciation expense | 7,367 |  |  | 426 |  |  | — |  |  | — |  |  | 7,793 |
Total operating expenses | 116,418 |  |  | 15,399 |  |  | — |  |  | — |  |  | 131,817 |
Operating income / (loss) | $ | 36,452 |  |  | $ | 448 |  |  | $ | (30) |  |  | $ | 151 |  |  | $ | 37,021 |
Reconciliation of operating income to income before income taxes |  |  |  |  |  |  |  |  |
Operating income |  |  |  |  |  |  |  |  | $ | 37,021 |
Interest expense |  |  |  |  |  |  |  |  | (4,326) |
Interest income |  |  |  |  |  |  |  |  | 11,274 |
Other income / (expense), net |  |  |  |  |  |  |  |  | 3,538 |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 47,507 |
| Three Months Ended September 30, 2024
| Alarm.com |  | Other |  | Intersegment Alarm.com |  | Intersegment Other |  | Total
SaaS and license revenue | $ | 141,319 |  |  | $ | 17,957 |  |  | $ | — |  |  | $ | — |  |  | $ | 159,276 |
Hardware and other revenue | 80,597 |  |  | 1,610 |  |  | (817) |  |  | (169) |  |  | 81,221 |
Total revenue | 221,916 |  |  | 19,567 |  |  | (817) |  |  | (169) |  |  | 240,497 |
Cost of SaaS and license revenue | 17,542 |  |  | 5,557 |  |  | 75 |  |  | (75) |  |  | 23,099 |
Cost of hardware and other revenue | 61,214 |  |  | 1,346 |  |  | (785) |  |  | (126) |  |  | 61,649 |
Total cost of revenue | 78,756 |  |  | 6,903 |  |  | (710) |  |  | (201) |  |  | 84,748 |
Selling and marketing expense | 21,604 |  |  | 5,406 |  |  | — |  |  | — |  |  | 27,010 |
General and administrative expense | 24,174 |  |  | 1,538 |  |  | — |  |  | — |  |  | 25,712 |
Research and development expense | 55,479 |  |  | 6,742 |  |  | — |  |  | — |  |  | 62,221 |
Amortization and depreciation expense | 7,357 |  |  | 255 |  |  | — |  |  | — |  |  | 7,612 |
Total operating expenses | 108,614 |  |  | 13,941 |  |  | — |  |  | — |  |  | 122,555 |
Operating income / (loss) | $ | 34,546 |  |  | $ | (1,277) |  |  | $ | (107) |  |  | $ | 32 |  |  | $ | 33,194 |
Reconciliation of operating income to income before income taxes |  |  |  |  |  |  |  |  |
Operating income |  |  |  |  |  |  |  |  | $ | 33,194 |
Interest expense |  |  |  |  |  |  |  |  | (4,315) |
Interest income |  |  |  |  |  |  |  |  | 14,384 |
Other income / (expense), net |  |  |  |  |  |  |  |  | (89) |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 43,174 |
| Nine Months Ended September 30, 2025
| Alarm.com |  | Other |  | Intersegment Alarm.com |  | Intersegment Other |  | Total
SaaS and license revenue | $ | 451,934 |  |  | $ | 57,231 |  |  | $ | — |  |  | $ | — |  |  | $ | 509,165 |
Hardware and other revenue | 235,222 |  |  | 8,301 |  |  | (2,147) |  |  | (1,011) |  |  | 240,365 |
Total revenue | 687,156 |  |  | 65,532 |  |  | (2,147) |  |  | (1,011) |  |  | 749,530 |
Cost of SaaS and license revenue | 51,987 |  |  | 17,467 |  |  | 261 |  |  | (261) |  |  | 69,454 |
Cost of hardware and other revenue | 179,372 |  |  | 7,671 |  |  | (2,080) |  |  | (1,159) |  |  | 183,804 |
Total cost of revenue | 231,359 |  |  | 25,138 |  |  | (1,819) |  |  | (1,420) |  |  | 253,258 |
Selling and marketing expense | 70,768 |  |  | 18,415 |  |  | — |  |  | — |  |  | 89,183 |
General and administrative expense | 76,619 |  |  | 5,355 |  |  | — |  |  | — |  |  | 81,974 |
Research and development expense | 181,288 |  |  | 22,786 |  |  | — |  |  | — |  |  | 204,074 |
Amortization and depreciation expense | 21,334 |  |  | 1,017 |  |  | — |  |  | — |  |  | 22,351 |
Total operating expenses | 350,009 |  |  | 47,573 |  |  | — |  |  | — |  |  | 397,582 |
Operating income / (loss) | $ | 105,788 |  |  | $ | (7,179) |  |  | $ | (328) |  |  | $ | 409 |  |  | $ | 98,690 |
Reconciliation of operating income to income before income taxes |  |  |  |  |  |  |  |  |
Operating income |  |  |  |  |  |  |  |  | $ | 98,690 |
Interest expense |  |  |  |  |  |  |  |  | (12,961) |
Interest income |  |  |  |  |  |  |  |  | 35,453 |
Other income / (expense), net |  |  |  |  |  |  |  |  | 703 |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 121,885 |
| Nine Months Ended September 30, 2024
| Alarm.com |  | Other |  | Intersegment Alarm.com |  | Intersegment Other |  | Total
SaaS and license revenue | $ | 420,032 |  |  | $ | 45,515 |  |  | $ | — |  |  | $ | — |  |  | $ | 465,547 |
Hardware and other revenue | 230,424 |  |  | 4,472 |  |  | (2,362) |  |  | (494) |  |  | 232,040 |
Total revenue | 650,456 |  |  | 49,987 |  |  | (2,362) |  |  | (494) |  |  | 697,587 |
Cost of SaaS and license revenue | 51,012 |  |  | 14,572 |  |  | 250 |  |  | (213) |  |  | 65,621 |
Cost of hardware and other revenue | 175,600 |  |  | 3,973 |  |  | (2,283) |  |  | (366) |  |  | 176,924 |
Total cost of revenue | 226,612 |  |  | 18,545 |  |  | (2,033) |  |  | (579) |  |  | 242,545 |
Selling and marketing expense | 64,467 |  |  | 15,834 |  |  | — |  |  | — |  |  | 80,301 |
General and administrative expense | 76,408 |  |  | 4,704 |  |  | — |  |  | — |  |  | 81,112 |
Research and development expense | 172,894 |  |  | 21,013 |  |  | — |  |  | — |  |  | 193,907 |
Amortization and depreciation expense | 21,268 |  |  | 761 |  |  | — |  |  | — |  |  | 22,029 |
Total operating expenses | 335,037 |  |  | 42,312 |  |  | — |  |  | — |  |  | 377,349 |
Operating income / (loss) | $ | 88,807 |  |  | $ | (10,870) |  |  | $ | (329) |  |  | $ | 85 |  |  | $ | 77,693 |
Reconciliation of operating income to income before income taxes |  |  |  |  |  |  |  |  |
Operating income |  |  |  |  |  |  |  |  | $ | 77,693 |
Interest expense |  |  |  |  |  |  |  |  | (7,079) |
Interest income |  |  |  |  |  |  |  |  | 33,780 |
Other income / (expense), net |  |  |  |  |  |  |  |  | (1,665) |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 102,729 |
| Alarm.com |  | Other |  | Intersegment Alarm.com |  | Intersegment Other |  | Total
Assets as of September 30, 2025 | $ | 2,174,476 |  |  | $ | 86,006 |  |  | $ | (136,886) |  |  | $ | (6) |  |  | $ | 2,123,590 |
Assets as of December 31, 2024 | 2,081,214 |  |  | 85,468 |  |  | (128,465) |  |  | (9) |  |  | 2,038,208 |
Our SaaS and license revenue for the Alarm.com segment included software license revenue of $4.3 million and $13.5 million for the three and nine months ended September 30, 2025, respectively, as compared to $5.0 million and $15.4 million for the same periods in the prior year. There was no software license revenue recorded for the Other segment during the three and nine months ended September 30, 2025 and 2024. Additions to property and equipment were $3.9 million and $16.9 million for the Alarm.com segment for the three and nine months ended September 30, 2025, respectively, as compared to $12.6 million and $18.4 million for the same periods in the prior year. Additions to property and equipment were less than $0.1 million and $0.1 million for the Other segment for the three and nine months ended September 30, 2025, respectively, as compared to less than $0.1 million and $0.1 million for the Other segment for the three and nine months ended September 30, 2024, respectively. We derived substantially all revenue from North America for the three and nine months ended September 30, 2025 and 2024. Substantially all of our long-lived assets were in North America as of September 30, 2025 and December 31, 2024.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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