Alarm.com Details Video Revenue Gains, Commercial Fire Adoption
Alarm.com, which exhibited at ISC West 2026, reported growing adoption of its commercial fire offering during its third-quarter earnings call, with more than 600 service providers having installed at least one paying commercial unit.Alarm.com, which exhibited at ISC West 2026, reported growing adoption of its commercial fire offering during its third-quarter earnings call, with more than 600 service providers having installed at least one paying commercial unit.
Analysts pressed Alarm.com executives on the sustainability of recurring revenue growth, the impact of video adoption on subscription pricing and the progress of commercial security initiatives during the company’s third-quarter 2026 earnings call. Questions also addressed international demand, Apple’s potential entry into the home security market and the implications of ADT’s pending acquisition.
Here are the key takeaways from the discussion.
Recurring revenue growth — Asked about the drivers behind the company’s preliminary 2027 SaaS revenue outlook, CFO Kevin Bradley pointed to stronger-than-expected performance from growth initiatives, improved revenue retention and higher average revenue per user (ARPU) associated with video services.
“We continue to see the growth initiatives sort of execute at a level slightly above what our expectations were,” Bradley said.
He added that retention has remained above the company’s historical range for three consecutive quarters, while residential account creation and video-related ARPU have contributed positively.
Bradley said growth initiatives are expected to account for approximately one-third of revenue in 2026, growing between 25% and 30%. Management’s preliminary 2027 outlook assumes that growth moderates to a range of 20% to 25%.
Video adoption and subscription pricing — Analysts sought additional detail on how increased camera adoption and upselling opportunities are affecting residential subscription revenue.
Bradley said ARPU on newly created residential accounts has increased approximately 5% annually, with video services playing a significant role. ARPU associated with video has risen about 30% over the past two years, contributing to an approximately 10% cumulative increase in new-account ARPU when combined with video attachment rates.
“So, I’d think about that more as like the $5.50 range at this point,” Bradley said.
The figure represents management’s current estimate for new-account ARPU rather than the blended average across all existing residential subscribers.
Commercial fire adoption — An analyst requested an update on Alarm.com’s commercial fire offering, including progress in expanding adoption among service providers.
CEO Steve Trundle reported that more than 600 service providers have installed at least one paying commercial unit, excluding test installations.
“We have got a couple of UL listings to continue to sort of grab, UL being just the ratings that you put on the communication device,” Trundle said.
He indicated that additional listings are needed before the offering can address its full potential market. Early partner engagement has been positive, with ARPU tracking management’s expectations.
ADT and emerging competition — Asked whether ADT’s acquisition by Thrive Holdings could create new opportunities for collaboration, Trundle said Alarm.com maintains regular communication with ADT management and does not currently anticipate a fundamental change in the relationship.
“I would expect to maintain the engagement, look for some opportunities that are maybe win-win that we can collaborate on and kind of keep going,” Trundle said.
Regarding Apple’s announced plans for the home, Trundle expressed interest in supporting another consumer interface alongside existing voice-assistant platforms. He indicated less concern about competing do-it-yourself camera products, which he said generally serve a different customer base.
International market pressures — Analysts also questioned international account growth following the business’s milestone of more than 1 million subscribers.
Trundle said international operations continue to grow faster than Alarm.com’s consolidated business but have fallen short of management’s expectations. He cited consumer financial pressures in Europe, particularly fuel prices, as a challenge for residential adoption.
The company has increased its emphasis on commercial opportunities, including video attachment, and is pursuing relationships with telecommunications carriers and other service providers outside the United States.
“I’d like to see it accelerate and really be an accretive driver to the overall set of growth initiatives. At the moment, it’s probably, of the ones we talk about, the laggard, but still growing faster than the consolidated business,” Trundle said.
Management did not provide a specific international account growth rate or timetable for accelerating performance.
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Rodney BoschRodney Bosch
Editor-in-Chief/SecurityInfoWatch.com
Rodney Bosch is the Editor-in-Chief of SecurityInfoWatch.com. He has covered the security industry since 2006 for multiple major security publications. Reach him at [email protected].
