What is Alarm.com Holdings, Inc.'s Shariah compliance score?

Alarm.com Holdings, Inc. (ALRM) has a Shariah compliance score of 55/100 (Grade: C+, Fair). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Alarm.com Holdings, Inc. pass AAOIFI screening?

Alarm.com Holdings, Inc. (ALRM) passes AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. ALRM's debt-to-market-cap is 20.1%.

How much purification is needed for Alarm.com Holdings, Inc.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Alarm.com Holdings, Inc. (ALRM) using the latest financial data.

Where can I screen Alarm.com Holdings, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Alarm.com Holdings, Inc. (ALRM) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

ALRMHalalC+

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Compliance Status

Halal

Screened on Oct 16, 2026 · AAOIFI Standard 21

C+

Fair

55Score

Is Alarm.com Holdings, Inc. (ALRM) halal? Halal. Based on AAOIFI screening, Alarm.com Holdings, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 55/100 (Grade: C+).

Quote this verdict

HalalScreener rates Alarm.com Holdings, Inc. (ALRM) Halal, 55/100, grade C+ under AAOIFI Standard 21, screened Oct 16, 2026. Source: https://halalscreener.app/en/stock/ALRM

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Within the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

20.1% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

You can own ALRM

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened ALRM's prohibited income, but the exact share you would need to purify is part of Pro.

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ALRM: Is Alarm.com Holdings, Inc. Halal?

Alarm.com Holdings, Inc.

NASDAQTechnologyUS

$57.37

Market Cap: 2.8B

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About Alarm.com Holdings, Inc.

Alarm.com Holdings, Inc. delivers a comprehensive suite of cloud-enabled services tailored for intelligent residential and commercial properties, serving clients across the United States and internationally. The company's operations are divided into two primary divisions: Alarm.com and Other. Its core offerings include interactive security platforms, empowering users to manage and oversee their security systems alongside various connected devices. These integrated security components encompass smart door locks, motion sensors, garage door openers, a range of Internet of Things (IoT) devices, smart thermostats, and advanced video cameras. Furthermore, the company specializes in sophisticated video surveillance capabilities, incorporating features such as video analytics, live streaming, video doorbells, recorded video clips, automated video alerts, continuous high-definition recording, and dedicated commercial video monitoring systems. Beyond security, Alarm.com provides intelligent automation and energy management solutions. These include custom "scenes" buttons, programmable smart thermostat schedules, responsive energy-saving features, precision climate control, real-time energy usage monitoring, HVAC system monitoring, comprehensive whole-home water safety systems, geo-fencing services, and demand response programs. For its business clients, Alarm.com offers a specialized array of commercial solutions designed for daily protection, commercial-grade video surveillance, energy cost reduction, safeguarding valuable assets and inventory, temperature tracking, multi-site management, and access control. These systems are lauded for their early detection capabilities, ease of use, professional support, and straightforward maintenance. The company also extends its reach to service providers, offering a permission-based online portal equipped with tools for account management, sales, marketing, training, and support. Additionally, it provides direct sales, marketing, and training services, alongside dedicated programs for home builders and holistic wellness solutions. Alarm.com caters to both individual homeowners and diverse commercial enterprises. Established in 2000, Alarm.com Holdings, Inc. maintains its corporate headquarters in Tysons, Virginia.

Sector: Technology · Industry: Software - Application

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 16, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Halalnow
since Oct 2026
Doubtful
until the change above
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

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Frequently Asked Questions

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

Based on AAOIFI Standard 21 screening, Alarm.com Holdings, Inc. (ALRM) is rated Halal with a compliance grade of C+ (Fair). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Alarm.com Holdings, Inc. get a C+ compliance rating?

Alarm.com Holdings, Inc. (ALRM) received a grade of C+ (Fair) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 20.1% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Alarm.com Holdings, Inc.'s Shariah verdict?

Alarm.com Holdings, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Alarm.com Holdings, Inc. re-screened for Shariah compliance?

Alarm.com Holdings, Inc. (ALRM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 16, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.