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

Alarm.com Holdings, Inc.'s (ALRM) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

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

Alarm.com Holdings, Inc. (ALRM) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (ALRM: 43.1%), (3) interest-bearing deposits below 30% (ALRM: 45.1%), and (4) prohibited income below 5% (ALRM: 5.2%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

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

Alarm.com Holdings, Inc. (ALRM) has a non-permissible income ratio of 5.18%. Muslim investors should purify this percentage of any dividends received and capital gains realized from ALRM shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation 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 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about ALRM's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

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

Alarm.com Holdings, Inc.

NASDAQTechnologyUS

$51.50

-0.37%

Market Cap: 2.5B

Compliance Status

Not Halal

Screened on Jul 19, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Alarm.com Holdings, Inc. (ALRM) halal? Not Halal. Based on AAOIFI screening, Alarm.com Holdings, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

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

43.1% of 30.0% limit

What this means for you

Most scholars advise not holding ALRM

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

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 Jul 19, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

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

Fiscal: Q1 2026Data source: EDGAR

Halal Alternatives in Technology

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Ubiquiti Inc.

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Willowglen MSC Bhd

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IRIS Corporation Bhd

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IFCA MSC Bhd

$0.20

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Frequently Asked Questions

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

Alarm.com Holdings, Inc. (ALRM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

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

Alarm.com Holdings, Inc. (ALRM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 43.1% (limit 30%); interest-bearing deposits of 45.1% (limit 30%); prohibited income of 5.18% (limit 5%). 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: Jul 19, 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.