Out of curiosity, I searched for commonly used words in the open-ended comments that form the basis for the 2026 SDM 100 article. As I suspected, some keywords appeared multiple times, such as tariffs: 60, video: 42, and AI: over 100!

In last year’s report, tariffs were just beginning to be a concern, but that did not tamp down enthusiasm in their predictions for what was to come. A year on, it turns out they were correct in their predictions that 2025 would be a good year. In fact, looking at the total RMR brought in by these top 100 companies, it was collectively the best year ever reported, with $740 million in recurring revenue.

In spite of comments both this year and in the past that the residential market is shrinking, the top 100 dealers also grew residential sales revenue by 22% while holding non-residential sales steady at $3.2 billion, the same as last year.

While there are multiple reasons behind the individual successes, as a group, there was a lot of agreement on top technology trends, with video being a big driver both commercially and residentially; more than one company referred to video technology as a “bright spot.”

The lesson that these top companies have to share about how to succeed in what Bay Alarm termed a “volatile and challenging economic environment” is this: Be a strategist; work closely to hone vendor and customer relationships; and lean into the technologies that can help both you and your customers succeed.

And of course, there is that 100-pound gorilla in the room, artificial intelligence. The SDM 100 list is made up of a mix of companies, from those that sell primarily to mostly residential/small commercial, to others that serve all large commercial customers. Of the latter, AI figured prominently, with several referring to the technology as “transformative.”

But AI was mentioned across the spectrum of companies who reported using it — or are planning to use it this year — for their own internal processes. Custom Security Systems Inc. wrote, “AI will have a major impact on our business this year, not just in the use of AI technology in cameras, access, security and services we offer to our clients, but in how we run our business. We will find a balance that allows us to use AI to assist with tasks and processes while maintaining one of the core principles of our business — personal connection to our clients and employees.”

This tracks with another keyword that appeared less often, but was no less important: ‘strategic’ or ‘strategy’ appeared more than 20 times, and was described without using that word in multiple other ways by companies such as American Alarm & Communications, which wrote, “Elevated interest rates continued to influence customer spending decisions, contributing to longer sales cycles and delayed capital projects. Despite these headwinds, we maintained steady activity levels by closely managing costs and focusing on higher-probability opportunities.”

KMT Systems described it more directly: “In 2025, the security market remained strong, but more strategic than in 2024.”

The lesson that these top companies have to share about how to succeed in what Bay Alarm termed a “volatile and challenging economic environment” is this: Be a strategist; work closely to hone vendor and customer relationships; and lean into the technologies that can help both you and your customers succeed.