Arlo Technologies (NYSE:ARLO) Announces Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Arlo Technologies (NYSE:ARLO) issued its earnings results on Thursday. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.09, FiscalAI reports. The company had revenue of $150.38 million during the quarter, compared to the consensus estimate of $139.73 million. Arlo Technologies had a net margin of 5.47% and a return on equity of 19.94%. Arlo Technologies’s quarterly revenue was up 26.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.15 EPS. Arlo Technologies updated its Q2 2026 guidance to 0.17-0.230 EPS.

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

• Arlo reported a record Q1 with total revenue of $150.4M (up 26% YoY) and non-GAAP EPS of $0.28 (up 86% YoY), coming in above the top end of guidance.
• Subscription momentum drove net additions of 318,000 paid accounts (surpassing 6 million paid accounts earlier than expected), ARPU of $15.60, and ARR of $357M (up 29% YoY).
• Profitability and cash generation improved materially: consolidated non-GAAP gross margin reached ~50% (up 460 bps), adjusted EBITDA was $30.4M (85% YoY increase), and free cash flow was $25.4M with $167.5M in cash and short-term investments.
• Strategic partnerships are advancing with imminent commercial launches for ADT and Samsung and a Comcast integration expected to materially impact 2027, expanding Arlo’s addressable market.
• Supply-cost headwinds remain: tariffs created a ~430 bps gross margin drag and memory costs have risen sharply (management cites ~160% increases), with tariff-relief eligibility and timing still uncertain.

Arlo Technologies Stock Up 2.3%

ARLO stock traded up $0.34 during mid-day trading on Friday, hitting $15.24. The company had a trading volume of 4,022,415 shares, compared to its average volume of 1,129,915. The company has a 50-day moving average price of $14.20 and a 200 day moving average price of $14.24. Arlo Technologies has a 12-month low of $11.05 and a 12-month high of $19.94. The company has a market capitalization of $1.66 billion, a price-to-earnings ratio of 56.45 and a beta of 1.60.

Insider Activity

In related news, CEO Matthew Blake Mcrae sold 153,433 shares of the stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $13.78, for a total transaction of $2,114,306.74. Following the completion of the transaction, the chief executive officer directly owned 1,168,866 shares of the company’s stock, valued at approximately $16,106,973.48. This represents a 11.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Brian Busse sold 25,525 shares of the firm’s stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $13.78, for a total value of $351,734.50. Following the transaction, the general counsel owned 583,364 shares of the company’s stock, valued at $8,038,755.92. This represents a 4.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 465,478 shares of company stock worth $6,522,193 over the last 90 days. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Arlo Technologies

A number of large investors have recently added to or reduced their stakes in the company. Quarry LP increased its stake in Arlo Technologies by 42.0% in the 3rd quarter. Quarry LP now owns 2,649 shares of the company’s stock worth $45,000 after acquiring an additional 783 shares during the last quarter. SkyView Investment Advisors LLC increased its stake in Arlo Technologies by 2.2% in the 2nd quarter. SkyView Investment Advisors LLC now owns 57,297 shares of the company’s stock worth $982,000 after acquiring an additional 1,226 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its stake in Arlo Technologies by 1.2% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 115,861 shares of the company’s stock worth $1,965,000 after acquiring an additional 1,399 shares during the last quarter. Nebula Research & Development LLC increased its stake in Arlo Technologies by 11.7% in 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 increased its stake in Arlo Technologies by 2.7% in the 4th quarter. Illinois Municipal Retirement Fund now owns 57,115 shares of the company’s stock worth $799,000 after acquiring an additional 1,509 shares during the last quarter. Institutional investors own 83.18% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on ARLO shares. Weiss Ratings raised Arlo Technologies from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, March 6th. Raymond James Financial reissued an “outperform” rating and issued a $19.00 price target on shares of Arlo Technologies in a report on Friday. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Arlo Technologies currently has an average rating of “Moderate Buy” and a consensus price target of $22.33.

More Arlo Technologies News

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

• Positive Sentiment: Arlo reported Q1 EPS of $0.28, beating the consensus estimate of $0.19, while revenue of $150.38 million also came in above expectations. Arlo Reports First Quarter 2026 Results
• Positive Sentiment: Management said subscriptions and services revenue reached a record $90 million and annual recurring revenue rose to $357 million, both up about 30%, signaling strong recurring revenue momentum. Arlo Reports First Quarter 2026 Results
• Positive Sentiment: Arlo also issued Q2 guidance for EPS of $0.17 to $0.23 and revenue of $145 million to $155 million, which brackets or exceeds analyst estimates and suggests the company expects continued solid execution. Arlo Reports First Quarter 2026 Results
• Neutral Sentiment: Analysts and commentary around the report focused on key metrics and the earnings call transcript, but no major downside issue stood out in the available updates. Arlo Technologies, Inc. (ARLO) Q1 2026 Earnings Call Transcript

Arlo Technologies announced that its Board of Directors has initiated a share repurchase plan on Wednesday, March 4th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

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.