Form 4: Alarm.com CFO Sells Shares to Cover Tax Obligations

Alarm.com Holdings, Inc.'s Chief Financial Officer, Kevin Christopher Bradley, sold 754 shares of common stock on July 2, 2025, at a weighted average price of $56.75, solely to cover tax withholding obligations related to vested restricted stock units.

Summary

• Kevin Christopher Bradley, the Chief Financial Officer of Alarm.com Holdings, Inc. (ALRM), executed a transaction on July 2, 2025.
• The transaction involved the sale of 754 shares of Alarm.com common stock.
• The shares were sold at a weighted average price of $56.75 per share, with individual transaction prices ranging from $56.20 to $57.00.
• This sale was a non-discretionary 'sell to cover' transaction, mandated by the Issuer's equity incentive plans to fund tax withholding obligations associated with the settlement of vested restricted stock units.
• Following this transaction, Kevin Christopher Bradley beneficially owns 53,056 shares of Alarm.com common stock.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 5

Explanation: The transaction is a routine, non-discretionary 'sell to cover' for tax purposes, which has a neutral impact on the company's operational or financial outlook. It does not signal positive or negative sentiment regarding the company's performance or future prospects.

Positives

• The sale of shares was explicitly stated as a non-discretionary transaction, solely for tax withholding purposes, rather than a discretionary decision by the CFO, which typically mitigates concerns about insider sentiment.

Negatives

• The transaction resulted in a reduction of 754 shares from the CFO's direct beneficial ownership.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Management Comments

• "This sale does not represent a discretionary trade by the Reporting Person."

Industry Context

This type of transaction, a 'sell to cover' for tax obligations related to equity compensation, is a common and routine occurrence for executives across various industries, particularly in technology and growth sectors where equity-based compensation is prevalent. It is a standard mechanism for managing the tax implications of vested stock awards.

Comparison to Industry Standards

• The 'sell to cover' transaction is a standard practice for executives across publicly traded companies globally when equity awards vest, allowing them to meet tax liabilities without needing to use personal funds.
• This mechanism is widely adopted and considered a routine part of executive compensation plans, aligning with common corporate governance practices for managing insider stock transactions transparently.

Corporate Governance

Stakeholder Impact

• Shareholders: The transaction is a routine tax-related sale and is unlikely to significantly impact shareholder perception or confidence, given its non-discretionary nature.
• Employees: No direct impact on employees is indicated by this filing.
• Customers: No direct impact on customers is indicated by this filing.
• Suppliers: No direct impact on suppliers is indicated by this filing.
• Creditors: No direct impact on creditors is indicated by this filing.

Next Steps

• The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the reported range.

Key Dates

Recommendation

Keywords

Alarm.com, ALRM, SEC Form 4, insider trading, stock sale, CFO, restricted stock units, tax withholding, Rule 10b5-1