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Segment Information
 9 Months Ended
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.comOtherIntersegment Alarm.comIntersegment OtherTotal
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 revenue17,715 6,518 90 (90)24,233 
Cost of hardware and other revenue61,002 3,489 (870)(292)63,329 
Total cost of revenue78,717 10,007 (780)(382)87,562 
Selling and marketing expense23,266 6,232 — — 29,498 
General and administrative expense26,438 1,451 — — 27,889 
Research and development expense59,347 7,290 — — 66,637 
Amortization and depreciation expense7,367 426 — — 7,793 
Total operating expenses116,418 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 income11,274 
Other income / (expense), net3,538 
Income before income taxes$47,507 
Three Months Ended September 30, 2024
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
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 revenue17,542 5,557 75 (75)23,099 
Cost of hardware and other revenue61,214 1,346 (785)(126)61,649 
Total cost of revenue78,756 6,903 (710)(201)84,748 
Selling and marketing expense21,604 5,406 — — 27,010 
General and administrative expense24,174 1,538 — — 25,712 
Research and development expense55,479 6,742 — — 62,221 
Amortization and depreciation expense7,357 255 — — 7,612 
Total operating expenses108,614 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 income14,384 
Other income / (expense), net(89)
Income before income taxes$43,174 
Nine Months Ended September 30, 2025
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
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 revenue51,987 17,467 261 (261)69,454 
Cost of hardware and other revenue179,372 7,671 (2,080)(1,159)183,804 
Total cost of revenue231,359 25,138 (1,819)(1,420)253,258 
Selling and marketing expense70,768 18,415 — — 89,183 
General and administrative expense76,619 5,355 — — 81,974 
Research and development expense181,288 22,786 — — 204,074 
Amortization and depreciation expense21,334 1,017 — — 22,351 
Total operating expenses350,009 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 income35,453 
Other income / (expense), net703 
Income before income taxes$121,885 
Nine Months Ended September 30, 2024
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
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 revenue51,012 14,572 250 (213)65,621 
Cost of hardware and other revenue175,600 3,973 (2,283)(366)176,924 
Total cost of revenue226,612 18,545 (2,033)(579)242,545 
Selling and marketing expense64,467 15,834 — — 80,301 
General and administrative expense76,408 4,704 — — 81,112 
Research and development expense172,894 21,013 — — 193,907 
Amortization and depreciation expense21,268 761 — — 22,029 
Total operating expenses335,037 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 income33,780 
Other income / (expense), net(1,665)
Income before income taxes$102,729 
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
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.