Alarm.com Holdings (ALRM) Launches AI Doorbell, Is The Stock Still A Bargain?

Alarm.com Holdings (ALRM) just rolled out the 781B Battery Video Doorbell, a wireless, AI-equipped device that extends its security platform into unwired entry points across homes and commercial properties.

Recent trading shows that momentum in Alarm.com Holdings is still building, with a 7 day share price return of 4.22% and a 90 day gain of 10.04%. Meanwhile, the 1 year total shareholder return of 9.14% sits against weaker 3 and 5 year compounded outcomes as the market reassesses long term execution risk around new products like the 781B Battery Video Doorbell.

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Bulls point to Alarm.com Holdings’ AI doorbell launch and recent share gains, while bears focus on softer multi year returns and execution risk. As you evaluate the stock today, which side does the current valuation appear to support?

Most Popular Narrative: 10.9% Undervalued

Alarm.com Holdings closed at $56.11, while the most followed narrative anchors on a fair value of $63, which frames the recent rerating more as catch up than exuberance.

The asset-light recurring software model, supported by revenue retention in the 95% range and connected devices that typically stay active for many years, is contributing to operating leverage, with adjusted EBITDA margin of 20.8% in Q2 2026 and guidance for 2026 adjusted EBITDA of US$221 million to US$223 million, which can support higher net margins and cash generation over time.

See why 2 investors see Alarm.com Holdings as 11% undervalued.

Result: Fair Value of $63 (UNDERVALUED)

Still, the Alarm.com Holdings story can change quickly if hardware tariffs squeeze margins harder than expected, or if already modest billings growth slows further and drags on SaaS momentum.

Find out about the key risks to this Alarm.com Holdings narrative.

Next Steps

Mixed signals on Alarm.com Holdings so far. Act while the data and narratives are fresh and weigh both sides with the 2 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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