Alarm.com Holdings, Inc. (ALRM) Financial Ratio Screen

NASDAQ Technology United States USD 2821M
RATIOS FAIL*
Automated financial screen · activity assessed separately
Alarm.com Holdings, Inc. (ALRM) is potentially non-compliant in the automated ratio model. The company's debt ratio of 49.9% exceeds the 30% MSCI new-inclusion threshold relative to total assets. Alarm.com Holdings, Inc. operates in the Technology sector.

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MSCI new-inclusion financial-ratio snapshot

ALRM financial screening at a glance

RATIOS FAIL*Financial ratios shown separately from business review — not a fatwa
Debt ratio
49.9%
Fail vs 30%
Cash ratio
45.0%
Fail vs 30%
Receivables + cash
51.6%
Fail vs 30%
Impermissible income
4.5%
Pass vs 5%

Calculation date: 2026-08-31. Financial period used: December 2025. The ratios are automated proxies inspired by published methodologies; they are not official index determinations.

Independent method comparison

What the available screens say

How MSCI, FTSE and S&P-style screens differ
Request this stock review
MSCI-styleFinancial criteria not metAt least one available ratio exceeds its threshold
FTSE/Yasaar-styleFinancial criteria not metAt least one available ratio exceeds its threshold
S&P-style provisionalNot yet availableRequired denominator or financial data is incomplete
Business activityAssessment pendingFinancial results do not determine business permissibility
Complete screening result: not yet completeA complete result requires both supported financial criteria and adequate activity evidence. This site does not issue a fatwa or official index decision.
Financial periodDecember 2025Calculation date2026-08-31S&P-style historynot availableLast activity reviewnot yet reviewed

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Business activity evidence

Activity assessment in progress

The supplied classification (Software - Application) is only a starting point. Revenue evidence is being assessed before any complete screening conclusion.

Revenue segments: Not yet checked against an SEC annual filing.

Profile description reviewed: Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally. It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services. The company was founded in 2000 and is headquartered in Tysons, Virginia.

Sources to verify: Secondary company profile and classification · Issuer website · SEC issuer filings

A sector label or company description can flag a risk but cannot establish a compliant-revenue percentage. Only sourced segment disclosures may support that calculation.

Published-ratio reproductions (not certifications)

The table shows implemented MSCI and FTSE/Yasaar-style asset-based models plus a provisional S&P-style leverage reconstruction where a complete 36-month denominator exists. These are independent calculations, not official index results or Shariah determinations. See formulas, sources and limitations.

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
MSCI 49.9%
/ 30%
45.0%
/ 30%
51.6%
/ 30%
4.51%
/ 5%
RATIOS FAIL*
FTSE 49.9%
/ 33%
45.0%
/ 33%
51.6%
/ 50%
4.51%
/ 5%
RATIOS FAIL*

Financial Highlights

P/E Ratio
25.5
Forward: 18.7
EPS
$2.25
P/B Ratio
3.3
EV/EBITDA
17.6
EV: $3.0B
Revenue
$1.0B
Growth: 9.2%
Beta
0.8
Low volatility
Current Ratio
5.0

Profitability

Gross Margin 65.8%
Operating Margin 15.1%
Net Margin 11.1%
Return on Equity (ROE) 13.3%
Return on Assets (ROA) 5.0%

Cash Flow & Balance Sheet

Operating Cash Flow$153M
Free Cash Flow$136M
Total Debt$1.1B
Debt-to-Equity62.3
Current Ratio5.0
Total Assets$2.1B

Price & Trading

Last Close$57.60
50-Day MA$52.74
200-Day MA$48.84
Avg Volume487K
Beta0.8
52-Week Range
$41.49
$58.20

Financial data provenance and verification

The displayed fields were imported from yfinance on 2026-08-30 for the financial period December 2025. This is a secondary data feed and can differ from amended or newly filed statements.

Verification rule: check debt, cash, receivables, revenue and interest income against the latest primary filing before relying on an automated ratio.

About Alarm.com Holdings, Inc. (ALRM)

CEO
Mr. Stephen S. Trundle
Employees
2,051
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap (listing currency)
USD 2821M
Currency
USD

Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally. It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services. The company was founded in 2000 and is headquartered in Tysons, Virginia.

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Frequently Asked Questions

Is Alarm.com Holdings, Inc. (ALRM) halal to invest in?

The current automated result is Financial criteria not met or an activity exclusion was detected. It uses available public financial fields and simplified methodology proxies. It is not a fatwa or an official determination by AAOIFI, DJIM, MSCI, S&P, or FTSE.

What is Alarm.com Holdings, Inc.'s debt ratio?

Alarm.com Holdings, Inc.'s debt ratio is 49.9% in the MSCI new-inclusion reproduction: total debt divided by total assets, against a 30% threshold. See the methodology page for the official source and limitations.

What are Alarm.com Holdings, Inc.'s key financial metrics?

Alarm.com Holdings, Inc. has a market capitalization of USD 2821M in its listing currency, trailing P/E ratio of 25.5, and revenue of $1.0B. The company maintains a gross margin of 65.8% and a net margin of 11.1%. Return on equity stands at 13.3%.

How often is the screening data updated?

Calculation date: 2026-08-31. Financial period: December 2025. These dates are shown separately because regenerating this page does not refresh the underlying data.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.