Arlo Technologies (NYSE:ARLO) Issues Earnings Results

Arlo Technologies (NYSE:ARLO) issued its earnings results on Thursday. The company reported $0.22 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.06, FiscalAI reports. The business 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%. The company’s quarterly revenue was up 16.2% compared to the same quarter last year. During the same period last year, the company posted $0.10 earnings per share. 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 Trading Up 29.9%

Shares of NYSE:ARLO traded up $3.69 during trading on Friday, reaching $16.03. The stock had a trading volume of 3,750,684 shares, compared to its average volume of 1,358,141. The firm’s 50-day simple moving average is $13.03 and its 200 day simple moving average is $15.33. Arlo Technologies has a one year low of $7.84 and a one year high of $19.94. The company has a market capitalization of $1.70 billion, a P/E ratio of 534.51 and a beta of 1.66.

Insider Activity at Arlo Technologies

In other news, CFO Kurtis Joseph Binder sold 55,043 shares of the stock in a transaction on Friday, January 9th. The stock was sold at an average price of $13.69, for a total transaction of $753,538.67. Following the completion of the sale, the chief financial officer owned 460,970 shares in the company, valued at approximately $6,310,679.30. This represents a 10.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, General Counsel Brian Busse sold 31,407 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $12.29, for a total value of $385,992.03. Following the completion of the sale, the general counsel directly owned 552,850 shares of the company’s stock, valued at $6,794,526.50. The trade was a 5.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 684,286 shares of company stock valued at $9,202,544 over the last 90 days. Insiders own 5.20% of the company’s stock.

Institutional Investors Weigh In On Arlo Technologies

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Quarry LP grew 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 worth $45,000 after acquiring an additional 783 shares during the last quarter. Quadrant Capital Group LLC acquired a new position in Arlo Technologies during the 3rd quarter valued at approximately $86,000. EverSource Wealth Advisors LLC raised its holdings in shares of Arlo Technologies by 1,682.9% in the second quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company’s stock worth $95,000 after buying an additional 5,301 shares during the last quarter. Strs Ohio acquired a new stake in shares of Arlo Technologies during the first quarter worth $66,000. Finally, Quantbot Technologies LP purchased a new stake in shares of Arlo Technologies during the second quarter valued at $132,000. 83.18% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Arlo Technologies

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

• Positive Sentiment: Q4 results beat expectations — Arlo reported $0.22 EPS vs. consensus ~$0.16 and revenue of $141.3M vs. ~$135.6M, showing 16% YoY revenue growth. This surprise drove initial bullish sentiment. Arlo Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Subscription momentum and margin progress — Management highlighted record subscription revenue, ~30% ARR/subscriptions growth, and a large improvement in non‑GAAP gross margin driven by services and higher‑value product mix — key for recurring revenue re-rating. Arlo Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Q1 2026 guidance raised above street — Company gave EPS guidance of $0.170–$0.230 vs. consensus ~$0.12 and revenue guidance of $135–$145M vs. consensus ~$132M, signaling continued revenue and profit leverage. What To Expect From Arlo Technologies’s (ARLO) Q4 Earnings
• Neutral Sentiment: Earnings call and slides available — Management provided a detailed transcript and slide deck; useful for confirming cadence of subscription growth, product cadence, and margin assumptions. Arlo (ARLO) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst coverage and writeups summarize beat and strategy — Multiple outlets (Zacks, Investing, Yahoo) note the beat and the strategic push into privacy/edge computing as the growth engine; these pieces help shape consensus but do not change fundamentals by themselves. Arlo Technologies earnings up next: Can privacy edge pay off?
• Negative Sentiment: Valuation and profitability remain concerns — Trailing metrics show a very high P/E and modest net margin (0.84%) and ROE (~2%), so the stock price implies continued strong execution; any miss on subscription growth or margins could reverse gains. Arlo Technologies: Q4 Earnings Snapshot
• Negative Sentiment: Forward yearly outlook still uncertain — Some sell‑side models expect a negative full‑year EPS; the business remains sensitive to hardware cycles and execution on services monetization. Investors should watch subscription ARPU, churn, and margin trajectory in coming quarters. Arlo Technologies (ARLO) Tops Q4 Earnings and Revenue Estimates

Analyst Upgrades and Downgrades

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