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

Yes, as of August 2026, Alarm.com Holdings, Inc. stock (ALRM) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Alarm.com Holdings, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 98.18%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Alarm.com Holdings, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Alarm.com Holdings, Inc. ALRM reviewed for Shariah compliance?

Tabadulat reviews Alarm.com Holdings, Inc. ALRM for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Alarm.com Holdings, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Alarm.com Holdings, Inc. stock (ALRM) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Alarm.com Holdings, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Alarm.com Holdings, Inc. stock (ALRM) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Alarm.com Holdings, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Alarm.com Holdings, Inc. stock (ALRM) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Alarm.com Holdings, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Alarm.com Holdings, Inc. ALRM stock?

As of August 2026, the dividend purification factor for Alarm.com Holdings, Inc. (ALRM) is 98.18%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Alarm.com Holdings, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Alarm.com Holdings, Inc. stock (ALRM) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Alarm.com Holdings, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Alarm.com Holdings, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

ALRM

About

Alarm.com Holdings, Inc.

ALRM

Alarm.com Holdings Inc. is a prominent provider of innovative cloud-based platforms for smart home and business security solutions. The company's primary function is to deliver integrated technology systems that enhance the security, automation, and energy management of residential and commercial properties. Alarm.com Holdings offers a diverse range of services including interactive security control, video monitoring, and intelligent automation, allowing users to manage their systems via mobile apps and web interfaces. This flexibility has positioned Alarm.com as a leader in the Internet of Things (IoT) market, significantly impacting sectors such as property management, utilities, and telecommunications. By collaborating with a network of service providers who install and support its technology, Alarm.com plays a crucial role in advancing the adoption of smart-security solutions. Founded in 2000 and headquartered in Tysons, Virginia, the company continues to expand its influence in the growing home automation and security industry, emphasizing user-friendly, customizable solutions that drive the future of connected living spaces.

Sector:

Technology

Industry:

Software - Application

Employees:

2048

Website:

https://www.alarm.com

ALRM

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Alarm.com Holdings, Inc.

About

Alarm.com Holdings, Inc.

ALRM

Frequently asked questions

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

How often is Alarm.com Holdings, Inc. ALRM reviewed for Shariah compliance?

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Non Permissible Income criteria?

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Interest Bearing Investments criteria?

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Alarm.com Holdings, Inc. ALRM stock?

Does Alarm.com Holdings, Inc. ALRM pass the AAOIFI Preference Share screen?

How do I buy Alarm.com (ALRM) stock?

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