analyticsVertical SaaS
Data as of Q1 2026
Summary Verdict
FRSH: 4—ALRM: 1wins
Rule of 40
36.9FRSH
18.7ALRM
check_circleFRSH leads
Revenue Growth
17.3%FRSH
8.0%ALRM
check_circleFRSH leads
Gross Margin
85%FRSH
66%ALRM
check_circleFRSH leads
FCF Margin
19.7%FRSH
10.7%ALRM
check_circleFRSH leads
Operating Margin
-4.1%FRSH
12.8%ALRM
check_circleALRM leads
NRR
—FRSH
—ALRM
Metric
Rule of 40Efficiency score
FRSH
36.9check_circle
ALRM
18.7
Revenue GrowthYoY
FRSH
17.3%check_circle
ALRM
8.0%
Gross Margin% of revenue
FRSH
85%check_circle
ALRM
66%
FCF MarginFree cash flow
FRSH
19.7%check_circle
ALRM
10.7%
Operating MarginGAAP
FRSH
-4.1%
ALRM
12.8%check_circle
NRRNet retention
FRSH
N/A
ALRM
N/A
EV / RevenueValuation multiple
FRSH
2.4x
ALRM
1.1xcheck_circle
Market CapUSD
FRSH
$2.6Bcheck_circle
ALRM
$2.2B
ARR GrowthYoY
FRSH
N/A
ALRM
N/A
CAC PaybackMonths to recover
FRSH
N/A
ALRM
N/A
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insights
Analysis
As of Q1 2026, Freshworks Inc. trades at 2.4x EV/Revenue versus Alarm.com Holdings, Inc. at 1.1x. On the Rule of 40, Freshworks Inc. scores 36.9 compared to Alarm.com Holdings, Inc.'s 18.7, placing Freshworks Inc. ahead in operating efficiency. Gross margins stand at Freshworks Inc. 85% vs Alarm.com Holdings, Inc. 66%.
Sector Context
Both companies operate in the Vertical SaaS sector. The median columns above show where each company stands relative to their peers.