Alarm.com Holdings Hits New 52-Week Low at $43.00 Amid Declining Stock Performance

Alarm.com Holdings, Inc. has reached a new 52-week low, trading at USD 43.00 as of February 23, 2026. This marks a significant decline for the small-cap software company, which has seen its stock price decrease by 29.35% over the past year, contrasting sharply with the S&P 500's performance of 12.95% during the same period. Despite this downturn, Alarm.com maintains a market capitalization of USD 2,271 million and exhibits a price-to-earnings (P/E) ratio of 20.00. The company has demonstrated a healthy long-term growth trajectory, with net sales increasing at an annual rate of 10.35%. Alarm.com also reported strong operational metrics, including an operating cash flow of USD 180.38 million and a return on capital employed (ROCE) of 17.95%. The company's low debt-to-equity ratio of 0.04 indicates a conservative financial structure, while a return on equity (ROE) of 15.82% suggests effective management of shareholder equity. However, Alarm.com has faced challenges in both short-term and long-term performance, generating a return of -24.72% over the last year and underperforming the S&P 500 across multiple time frames.