Arlo Technologies (NYSE:ARLO) Announces Earnings Results

Arlo Technologies (NYSE:ARLO) announced its quarterly earnings results on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.06, FiscalAI reports. The firm had revenue of $141.30 million for the quarter, compared to analyst estimates of $135.57 million. Arlo Technologies had a net margin of 0.84% and a return on equity of 2.00%. Arlo Technologies updated its Q1 2026 guidance to 0.170-0.230 EPS.

Here are the key takeaways from Arlo Technologies’ conference call:

• Arlo materially beat guidance in Q4 and FY‑2025 — Q4 revenue $141M, Q4 adjusted EBITDA $23M (+138% YoY), Q4 non‑GAAP EPS $0.22, FY‑2025 non‑GAAP EPS $0.70 — and guided 2026 revenue to $550M–$580M with non‑GAAP EPS of $0.75–$0.85.
• The subscription/services engine is the growth driver — services were $316M in 2025 (60% of revenue), Q4 services $89M (+~40% YoY), ARR $330M (+28% YoY), monthly churn ~1% (99% retention), ARPU $15.30, LTV ~$917 and LTV:CAC ~4.0, with service gross margin ≈84%.
• New strategic partnerships could be transformational — Arlo will power Samsung’s SmartThings Safe Premium, has a major Comcast/Xfinity agreement, and is integrating with ADT; management expects these to begin contributing in 2026 and materially ramp in 2027+.
• Board-approved capital allocation supports shareholder returns and growth — management repurchased ~$45.5M in 2025, approved an additional $50M buyback, invested in Origin AI, and plans continued organic R&D plus targeted M&A.
• Risks to margins and timing remain — management is conservatively assuming the 20% tariff structure will persist amid legal uncertainty, Q4 included ~$4M of lower‑margin NRE revenue, and memory cost pressures exist (though described as manageable), which could weigh on near‑term margins or cash flow.

Arlo Technologies Price Performance

Shares of NYSE ARLO traded up $0.44 during midday trading on Thursday, hitting $12.35. The stock had a trading volume of 1,651,894 shares, compared to its average volume of 1,298,370. The firm has a market cap of $1.31 billion, a P/E ratio of 411.80 and a beta of 1.66. Arlo Technologies has a fifty-two week low of $7.84 and a fifty-two week high of $19.94. The company’s 50-day simple moving average is $13.06 and its 200 day simple moving average is $15.35.

Insider Activity at Arlo Technologies

In other news, General Counsel Brian Busse sold 31,407 shares of Arlo Technologies stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $12.29, for a total transaction of $385,992.03. Following the completion of the sale, the general counsel owned 552,850 shares in the company, valued at $6,794,526.50. The trade was a 5.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Matthew Blake Mcrae sold 257,242 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $14.28, for a total transaction of $3,673,415.76. Following the sale, the chief executive officer directly owned 941,586 shares of the company’s stock, valued at approximately $13,445,848.08. This trade represents a 21.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 684,286 shares of company stock worth $9,202,544 over the last 90 days. Insiders own 5.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Quarry LP lifted its stake in Arlo Technologies by 42.0% in the third quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after buying an additional 783 shares during the period. SkyView Investment Advisors LLC increased its stake in shares of Arlo Technologies by 2.2% in the 2nd quarter. SkyView Investment Advisors LLC now owns 57,297 shares of the company’s stock valued at $982,000 after acquiring an additional 1,226 shares during the last quarter. CANADA LIFE ASSURANCE Co raised its position in shares of Arlo Technologies by 1.2% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 115,861 shares of the company’s stock valued at $1,965,000 after acquiring an additional 1,399 shares during the period. Nebula Research & Development LLC boosted its stake in Arlo Technologies by 11.7% during the 2nd quarter. Nebula Research & Development LLC now owns 14,002 shares of the company’s stock worth $237,000 after acquiring an additional 1,472 shares during the last quarter. Finally, Illinois Municipal Retirement Fund grew its holdings in Arlo Technologies by 2.7% during the fourth quarter. Illinois Municipal Retirement Fund now owns 57,115 shares of the company’s stock valued at $799,000 after purchasing an additional 1,509 shares during the period. 83.18% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on ARLO. BWS Financial reissued a “buy” rating and issued a $26.00 price target on shares of Arlo Technologies in a research report on Tuesday, November 11th. Zacks Research cut Arlo Technologies from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Finally, Weiss Ratings lowered Arlo Technologies from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, February 20th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Arlo Technologies has an average rating of “Hold” and a consensus price target of $23.00.

About Arlo Technologies

Arlo Technologies, Inc (NYSE: ARLO) is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.