Alarm.com Holdings, Inc.

We have included non-GAAP measures in this press release because they are financial, operating or liquidity measures used by our management to (i) understand and evaluate our core operating performance and trends and generate future operating plans, (ii) make strategic decisions regarding the allocation of capital and investments in initiatives that are focused on cultivating new markets for our solutions and (iii) provide useful information to management about the amount of cash generated by the business after necessary capital expenditures.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

2 We exclude one or more of the following items from non-GAAP financial and operating measures Interest expense We record interest expense primarily related to the January 2021 issuance of $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026, or the 2026 Notes, and the May 2024 issuance of $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, or the 2029 Notes.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude interest expense other than the interest expense related to the amortization of debt issuance costs related to the 2026 Notes and 2029 Notes as discussed below.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Interest income and certain activity within other expense, net We exclude interest income as well as certain activity within other expense, net including gains, losses or impairments on investments without readily determinable fair values and other assets, gains on settlement fees as well as losses on the early extinguishment of the debt, when applicable, from our non-GAAP financial measures because we do not consider it part of our ongoing results of operations.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Amortization of debt issuance costs We record amortization of debt issuance costs related to the 2026 Notes and 2029 Notes as interest expense.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We exclude amortization of debt issuance costs from our non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, because we believe that the exclusion of this non-cash interest expense will provide for more meaningful information about our financial performance.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

We have included non-GAAP measures in this press release because they are financial, operating or liquidity measures used by our management to (i) understand and evaluate our core operating performance and trends and generate future operating plans, (ii) make strategic decisions regarding the allocation of capital and investments in initiatives that are focused on cultivating new markets for our solutions and (iii) provide useful information to management about the amount of cash generated by the business after necessary capital expenditures.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

In July 2025, we learned that this service provider partner may have a lien placed on its property that may have a priority over our security interest.

SEC original ↗Alarm.com Holdings, Inc. — 10-Q Quarterly report10-QAug 6, 2026

In particular, non-ordinary course litigation expense, acquisition-related expense and tax windfall or shortfall adjustments can have unpredictable fluctuations based on unforeseen activity that is out of our control and or cannot reasonably be predicted.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Litigation expense We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred and received in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes, particularly costs incurred in ongoing intellectual property litigation, to be indicative of our core operating performance.

SEC original ↗Alarm.com Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Legal Proceedings 43 Item 1A.

SEC original ↗Alarm.com Holdings, Inc. — 10-Q Quarterly report10-QAug 6, 2026

However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval (including the ongoing conflicts in Ukraine, and in the Middle East and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, tariffs, risk of recession and inflation (collectively, the Macroeconomic Conditions).

SEC original ↗Alarm.com Holdings, Inc. — 10-Q Quarterly report10-QAug 6, 2026

These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, tariffs, energy prices and consumer sentiment.

SEC original ↗Alarm.com Holdings, Inc. — 10-Q Quarterly report10-QAug 6, 2026

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2026, which is increasingly true in periods of uncertainty, such as the uncertainty caused by the Macroeconomic Conditions.

SEC original ↗Alarm.com Holdings, Inc. — 10-Q Quarterly report10-QAug 6, 2026