ALRMAlarm.com Holdings, Inc.

Services-Prepackaged Software

Revenue: $1.0B; 7.6% YoY
Operating margin: 13.2%; 14% YoY
EBITDA: $164M; 19% YoY
Market cap: $3.2B
Employees: 2,058; $491K revenue each
Net debt / EBITDA: -2.2×; −$369M net debt
AI in 10-K: 7.3; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 0 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
$3M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
116% of net income
Cash flow under 80% of net income
Dilutive SBCNo
3% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
27% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
14% of assets
Over 40% of assets
Shareholder dissentNo
96% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeNo
$491K · 56th pct
Bottom quartile of its SIC industry
Quiet on AINo
7.3 per 10K words · 88th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 2.2× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedYes
$3.2B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$8M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$749M	$843M	$882M	$940M	$1.0B	7.6%
Operating income	$62M	$51M	$67M	$109M	$134M	23%
Net income	$51M	$56M	$80M	$123M	$132M	7.4%
Operating cash flow	$103M	$57M	$136M	$206M	$153M	26%
Capex	$11M	$29M	$8M	$10M	$16M	61%
Stock-based comp	$39M	$53M	$47M	$41M	$33M	20%
Buybacks	$0	$79M	$27M	$75M	$42M	45%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
May 22, 2020	TCV VII LP	SC 13D/A	0.0%	Passive
Mar 13, 2020	TCV VII LP	SC 13D/A	0.2%	Passive

Insider trading

Open-market buys, 12 mo: $1M · 4
Open-market sells, 12 mo: $9M · 19
Net: −$8M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$3M	$1M	49	—
FY2024	$3M	$2M	59	—
FY2023	$2M	$5M	62	—
FY2022	$3M	−$2M	48	—
FY2021	$4M	$2M	82	—