Arlo Technologies (NYSE:ARLO) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Arlo Technologies, Inc. (NYSE:ARLO) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $12.34, but opened at $14.58. Arlo Technologies shares last traded at $15.70, with a volume of 1,936,298 shares trading hands.

The company reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.06. Arlo Technologies had a net margin of 0.84% and a return on equity of 2.00%. The firm had revenue of $141.30 million during the quarter, compared to the consensus estimate of $135.57 million. During the same quarter last year, the firm earned $0.10 earnings per share. The firm’s revenue was up 16.2% compared to the same quarter last year. Arlo Technologies has set its Q1 2026 guidance at 0.170-0.230 EPS.

Arlo Technologies News Roundup

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Arlo reported record subscription and services growth, ~30% ARR growth and a material improvement in non‑GAAP gross margins, which management called a driver of improved profitability. Arlo Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Quarterly results beat Street estimates: EPS $0.22 vs. consensus $0.16 and revenue $141.3M vs. ~$135.6M, with revenue up ~16% year-over-year — a headline beat that likely fueled the rally. Arlo Technologies: Q4 Earnings Snapshot / MarketBeat
• Positive Sentiment: Management raised Q1 2026 guidance: EPS $0.170–0.230 (vs. consensus $0.120) and revenue $135M–$145M (vs. consensus ~$132.4M), signaling confidence in ongoing revenue and margin momentum. Arlo Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Preview pieces and analyst notes laid out expectations and key metrics investors should watch entering the print (subscription ARR, hardware mix, gross margin cadence). Useful for context but not new catalysts. What To Expect From Arlo Technologies’s (ARLO) Q4 Earnings
• Neutral Sentiment: Earnings call highlights and the full transcript provide management comments on strategy (privacy-edge offerings, subscription upsell) that clarify the growth plan but add no surprise items beyond the press release. Arlo Technologies Inc (ARLO) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic …
• Neutral Sentiment: Analyst pieces examine whether Arlo’s privacy-edge and subscription strategy can sustain higher ARPU and margins — important for forward multiple but inherently uncertain. Arlo Technologies earnings up next: Can privacy edge pay off?
• Negative Sentiment: Despite the beat, trailing profitability metrics remain modest (ROE ~2%, net margin under 1%) and the stock trades at a high P/E, leaving valuation and sustained margin expansion as key risks if subscription growth slows. Arlo Technologies: Q4 Earnings Snapshot / MarketBeat

Wall Street Analyst Weigh In

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

Insider Activity

In other news, CEO Matthew Blake Mcrae sold 257,242 shares of Arlo Technologies stock in a transaction 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 completion of the transaction, the chief executive officer owned 941,586 shares of the company’s stock, valued at $13,445,848.08. The trade was a 21.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, General Counsel Brian Busse sold 31,407 shares of the stock in a transaction dated 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 directly owned 552,850 shares in the company, valued at approximately $6,794,526.50. The trade was a 5.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 684,286 shares of company stock worth $9,202,544 over the last 90 days. 5.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Amalgamated Bank grew its holdings in Arlo Technologies by 2.4% during the 2nd quarter. Amalgamated Bank now owns 29,265 shares of the company’s stock valued at $496,000 after buying an additional 692 shares during the last quarter. Arizona State Retirement System lifted its position in shares of Arlo Technologies by 2.3% in the third quarter. Arizona State Retirement System now owns 30,597 shares of the company’s stock valued at $519,000 after acquiring an additional 702 shares in the last quarter. Smartleaf Asset Management LLC boosted its stake in shares of Arlo Technologies by 86.0% during the third quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company’s stock valued at $28,000 after acquiring an additional 747 shares during the last quarter. Quarry LP boosted its stake in shares of Arlo Technologies by 42.0% during the third quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after acquiring an additional 783 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund increased its position in Arlo Technologies by 3.4% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 24,268 shares of the company’s stock worth $340,000 after purchasing an additional 800 shares in the last quarter. 83.18% of the stock is owned by hedge funds and other institutional investors.

Arlo Technologies Trading Up 27.9%

The firm’s 50 day moving average is $13.03 and its two-hundred day moving average is $15.33. The stock has a market cap of $1.67 billion, a price-to-earnings ratio of 526.18 and a beta of 1.66.

Arlo Technologies Company Profile

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.