Arlo Technologies (NYSE:ARLO) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Arlo Technologies (NYSE:ARLO) announced its quarterly earnings data on Thursday. The company reported $0.22 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.06, FiscalAI reports. Arlo Technologies had a return on equity of 2.00% and a net margin of 0.84%.The business had revenue of $141.30 million during the quarter, compared to the consensus estimate of $135.57 million. During the same period in the previous year, the company posted $0.10 earnings per share. The business’s revenue for the quarter was up 16.2% on a year-over-year basis. 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 3.7%

ARLO stock traded up $0.44 on Thursday, hitting $12.35. The company’s stock had a trading volume of 1,651,894 shares, compared to its average volume of 1,298,370. The stock has a market cap of $1.31 billion, a price-to-earnings ratio of 411.80 and a beta of 1.66. The firm has a 50 day moving average of $13.03 and a two-hundred day moving average of $15.33. Arlo Technologies has a 1 year low of $7.84 and a 1 year high of $19.94.

Analyst Upgrades and Downgrades

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

Insider Transactions at Arlo Technologies

In other news, CFO Kurtis Joseph Binder sold 55,043 shares of the company’s stock in a transaction that occurred 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 $6,310,679.30. This represents a 10.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Brian Busse sold 31,407 shares of Arlo Technologies stock in a transaction 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 transaction, the general counsel owned 552,850 shares in the company, valued at approximately $6,794,526.50. This trade represents a 5.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 684,286 shares of company stock worth $9,202,544. Company insiders own 5.20% of the company’s stock.

Hedge Funds Weigh In On Arlo Technologies

A number of large investors have recently bought and sold shares of the company. Gamco Investors INC. ET AL acquired a new stake in shares of Arlo Technologies in the second quarter valued at about $215,000. Tower Research Capital LLC TRC lifted its position in shares of Arlo Technologies by 56.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 12,216 shares of the company’s stock valued at $207,000 after acquiring an additional 4,427 shares during the period. FORA Capital LLC acquired a new stake in shares of Arlo Technologies during the 2nd quarter valued at approximately $206,000. Magnetar Financial LLC purchased a new stake in shares of Arlo Technologies during the 4th quarter worth approximately $192,000. Finally, Glenmede Investment Management LP acquired a new stake in shares of Arlo Technologies in the 3rd quarter worth approximately $182,000. Hedge funds and other institutional investors own 83.18% of the company’s stock.

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.